- Indian equity benchmarks recovered with BSE Sensex up 0.78% at 73,820.01 by noon
- US Federal Reserve held rates steady, boosting risk appetite in emerging markets
- Foreign and domestic institutional investors bought shares, supporting market gains
Indian equity benchmarks extended their gains into the afternoon on Thursday, recovering from Wednesday's losses as investors drew comfort from global and domestic cues. By 2:28 pm, the BSE Sensex was up 810.98 points, or 1.11%, at 74,057.01, after touching an intraday high of 74,129.41. The NSE Nifty 50 rose 228.10 points, or 1%, to 22,926.95, having moved between 22,656.75 and 22,953.10. Both indices briefly dipped below their previous closes in early deals before buyers took charge.
Market breadth on the NSE favoured the bulls, with 2,155 stocks advancing against 1,355 declining. The India VIX, which tracks expected volatility, fell 6.49% to 15.19, signalling calmer nerves among traders. Here are three factors behind the upmove.
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Fed Stays On Hold
The US Federal Reserve left its policy rate unchanged on Wednesday, holding the target range at 3.75–4%. The pause came a month after the central bank raised rates in September, and some traders had been bracing for another increase as US inflation stays elevated. With that risk set aside for now, Wall Street ended higher overnight and appetite for riskier assets improved across emerging markets, including India.
Institutions Turn Buyers
Provisional exchange data showed foreign institutional investors bought Indian shares worth Rs 871.83 crore on Wednesday, while domestic institutions added Rs 643.35 crore. The foreign buying stands out because overseas funds have been relentless sellers this month, pulling more than Rs 51,000 crore out of the cash market in the first 15 sessions of October. Market participants said simultaneous buying by both groups gave the indices a broader base of support.
Earnings Lift Heavyweights
Strong September-quarter results drew investors back to index stocks. Adani Ports was the top Sensex gainer, climbing over 5% after it reported an 18% rise in consolidated net profit to Rs 3,682.44 crore. Power Grid, Kotak Mahindra Bank, Eternal and NTPC followed with gains of 2.6% to 4.1%, while buying in Reliance Industries, Infosys and TCS added further weight.
A slight easing in oil, with Brent down about 1% to $114.13 a barrel, offered modest relief to an economy that imports most of its crude.
However, the upside seen in markets today may face a cap, analysts warn. Geojit Investments' V K Vijayakumar told PTI the Fed's pause is mildly positive for global equities, but said India still faces strong headwinds, from US 10-year bond yields near 5% to crude prices that still remain significantly high.
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