Benchmark stock market indices closed higher on Thursday, rebounding from early losses as information technology (IT) stocks surged later in the day on renewed expectations of a rate cut by the US Federal Reserve. The S&P BSE Sensex rose by 158.51 points to settle at 85,265.32, while the NSE Nifty50 climbed by 47.75 points to finish at 26,033.75.
Vinod Nair, Head of Research at Geojit Investments Limited, mentioned that the domestic markets closed steady amidst mixed global signals and caution ahead of the RBI policy meeting. He noted that although the early gains driven by value were limited due to a weakening rupee and continuous FII outflows, the prospects of an RBI rate cut helped stabilize the indices towards the end of the trading session. The IT sector outperformed, fueled by optimism surrounding potential Fed rate reductions and favorable currency conditions, which boosted investor interest in the industry.
Tata Consultancy Services led the gainers with a 1.54% increase, followed by Tech Mahindra at 1.28%. Infosys and HCLTech also saw positive movements at 1.24% and 0.89%, respectively. Bharti Airtel rounded off the top performers, advancing by 0.83%, contributing to overall market sentiment despite weaknesses in other sectors.
Conversely, several stocks experienced selling pressure, with Maruti Suzuki posting the largest decline of 0.71% for the day. Eternal and Kotak Mahindra Bank followed with drops of 0.69% and 0.53%, respectively. Titan and ICICI Bank also recorded decreases of 0.44% and 0.35%, respectively.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, expressed concerns about the rupee’s weakness impacting sentiment and the cautious market stance prior to the MPC policy announcement. Mishra emphasized that with a 25 basis points rate cut largely anticipated in the upcoming MPC decision, the committee’s guidance would be crucial in determining the market’s future direction.