Tech Mahindra, ICICI Bank push Nifty higher; Sensex up 347 points

Mumbai: Indian benchmark indices opened higher on Thursday following positive global cues after the US Federal Reserve cut interest rates by 25 basis points.

As of 9.24 am, the Sensex was up 347 points, or 0.42 per cent, at 83,041, while the Nifty rose 89 points, or 0.35 per cent, to 25,419.

The Federal Reserve resumed its rate-cut cycle, reducing the benchmark by 25 basis points to a range of 4.0–4.25 per cent, signalling a shift in economic risk dynamics. Fed officials projected two additional cuts this year, with rates expected to reach 3.50–3.75 per cent by the end of 2025. The move was widely anticipated amid concerns over weak labour market data and persistent inflation.

Among sectoral indices, Nifty IT led the gains, rising 1.5 per cent, followed by Nifty Realty (up 0.66 per cent) and Nifty Pharma (up 0.37 per cent). Only the metal sector traded in the red. On the Nifty 50, top gainers included Tech Mahindra (up 1.10 per cent), ICICI Bank, TCS and Bajaj Finance, while Hindalco, Apollo Hospitals, SBI and SBI Life were among the losers.

Broad-market indices were mixed: the Nifty Midcap 100 edged up 0.08 per cent, and the Nifty Smallcap 100 gained 0.68 per cent. Analysts said the index shows potential upside momentum, with resistance expected around 25,400–25,500 and support near 25,000–24,900.

“Since the labour market is cooling and GDP growth projection for 2025 is only 1.5 per cent, perhaps two more cuts are possible this year,” said VK Vijayakumar, chief investment strategist at Geojit Investments. He added that the ongoing rally is driven by expectations of an economic revival and positive outcomes from India–US trade negotiations.

Asian markets were mostly in the green, with China’s Shanghai Composite up 0.41 per cent and Shenzhen rising 1.09 per cent. Japan’s Nikkei gained 1.09 per cent, while Hong Kong’s Hang Seng fell 0.08 per cent and South Korea’s Kospi added 1 per cent.

On Wednesday, foreign institutional investors sold equities worth ₹1,124 crore, while domestic institutional investors were net buyers to the tune of ₹2,293 crore.

IANS