Equity indices join rally in global markets as US Fed plans rate cut

Tribune News Service

Vijay C Roy

Chandigarh, March 21

Benchmark equity indices Sensex and Nifty joined a rally in global markets on Thursday after the US Federal Reserve maintained its projection of three rate cuts this year. According to experts, Construction, metals, PSU banks, media & entertainment, energy, consumer durables, financial services and pharma were among the major sectors which moved the index higher today.

According to data, Sensex settled 540 points higher at 72,641 levels while the Nifty 50 shut at 22,012, up 173 points. The US Federal Reserve kept the policy rate unchanged in the range of 5.25% to 5.5%. It signalled that it remains on track to cut interest rates by 75 basis points in 2024.

“The Indian markets gained significantly today. From the low made near 71,675 zone in the previous session, the Sensex managed to move past the important 50-EMA (Exponential Moving Average) level of 72,200 zone and breached the 72,500 levels intraday. Sensex gained 515 points and sentiment has improved along with a positive bias, so a further rise can be anticipated. Construction, metals, PSU Banks, media and entertainment, energy, consumer durables, financial services and pharma were among the major sectors which moved the index higher today,”said Shiju Koothupalakkal, Technical Analyst, Prabhudas Lilladher Pvt Ltd.

According to market experts, the Federal Reserve’s March policy was on expected lines. Though they indicated that three cuts will happen this year, however experts are of the view the quantum of rate cuts will not be more than 75 bps.”

Significant gains

• All sectors in the domestic market were in positive territory on Thursday, with Nifty Metal and Nifty PSU Bank witnessing the most significant gains at 2.5%
• The broader market outperformed the benchmarks. The Dollar Index, which gauges the greenback against a basket of currencies, dipped below 103

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