Market Wrap: Sensex climbs 320 points, Nifty tops 25,400 as Fed rate cut lifts sentiment – News Air Insight

Indian equities closed higher on Wednesday, with the Sensex and Nifty extending gains for a third straight session after the U.S. Federal Reserve trimmed interest rates by 0.25% to support its labour market. Sentiment was also buoyed by recent goods and services tax reforms and progress in trade talks between India and the US.

The S&P BSE Sensex finished 320.25 points, or 0.39%, higher at 83,013.96, while the NSE Nifty 50 advanced 93.35 points, or 0.37%, to 25,423.60.

Top Movers

On the 30-stock Sensex, gains were led by Eternal, Sun Pharma, Infosys, HDFC Bank and HCL Technologies, which rose between 0.8% and 3%.Sectorally, IT and pharmaceutical stocks, both heavily exposed to U.S. markets, advanced 0.8% and 1.5% respectively. The pharma index received an extra lift from Biocon and Natco Pharma, which climbed 4% and 3.3% following favourable regulatory action by the US drug regulator.

In the broader market, mid-cap shares gained 0.4% while small-caps edged up 0.3%.

The Fed cut rates for the first time this year but signalled a measured approach to further monetary easing, leaving investors uncertain about the pace of future moves.

Expert views

Nilesh Jain, head of technical and derivatives research at Centrum Broking, said the market’s uptrend remained intact. “The market continued its upward momentum for the third consecutive session, with the Nifty closing firmly above the 25,400 mark. It is forming a higher top and higher bottom pattern on the daily chart, which signals a positive trend,” he said.

According to Jain, the technical structure suggests further upside. “The overall technical setup remains strong, and the index now looks set to test the 25,650 level. Support has moved higher to around 25,300,” he added.

He also pointed to strengthening signals from market indicators. “Additionally, key momentum indicators and oscillators on the daily chart have shown bullish crossovers, reinforcing the positive outlook. Given the recent strong rally, a buy-on-dips approach is recommended.”

Global Markets

World equities advanced on Thursday following the U.S. Federal Reserve’s first rate cut of the year, though political uncertainty in France kept investors cautious and sterling held steady ahead of the Bank of England’s policy decision.

The Fed’s measured tone after a politically charged meeting lifted both the pan-European Stoxx 600 and Wall Street futures by 0.5%, despite an initially uneven reaction from U.S. traders the previous day.

Asian markets also rallied. Chinese shares climbed to a 10-year high as domestic chipmakers gained on reports of a ban on Nvidia products, while South Korea, Taiwan and Japan’s Nikkei all closed more than 1% higher.

Currency markets saw the dollar recover 0.2% after plunging to a three-and-a-half-year low earlier in the week, a move that had unsettled non-U.S. exporters.

The Fed’s “dot plot” projections pointed to two further cuts over its remaining meetings this year, but only one additional reduction in 2026. Chair Jerome Powell sought to temper expectations, stressing that the central bank need not move quickly from here, though analysts warned the outlook could shift.

In commodities, gold edged 0.2% higher to $3,665 a troy ounce.