Indian Stocks Extend Rally to third Day Following US Federal reserve Rate Cut
Mumbai – Indian stock indices continued their upward trajectory for a third consecutive session on Thursday, buoyed by the US Federal Reserve’s anticipated 25 basis point interest rate cut.The gains reflect positive investor sentiment driven by easing global monetary policy and sustained domestic confidence.
The NSE Nifty closed at 25,423.60, a 0.4% increase representing a gain of 93.35 points.Concurrently, the BSE sensex rose to 83,013.96, up 0.4% or 320.25 points. This rally comes as the US Federal Reserve signaled a perhaps slower pace of future rate hikes, easing concerns about global economic slowdown. A decline in market volatility, indicated by a 3.5% drop in India’s Volatility Index (VIX) to a record low of 9.89, further suggests a period of reduced risk aversion among traders.
Broader market indices also participated in the gains, with the Nifty Mid-cap 150 and Small-cap 250 indices rising by 0.3% and 0.1% respectively. Market activity saw 2,097 shares advance out of a total of 4,342 traded on the BSE, while 2,083 declined. Over the past week, mid-cap and small-cap indices have demonstrated robust performance, increasing by 1.8% and 2.3% respectively.
Investor activity further reinforced the positive trend, with Foreign Portfolio Investors (FPIs) injecting a net ₹366.7 crore into the market, alongside domestic investors contributing a net ₹3,326.6 crore in share purchases.