Indian stock markets kicked off Thursday with strong gains, driven by the US Federal Reserve’s recent interest rate cut and positive signals from India-US trade talks. The Nifty 50 index opened above 25,400, while the Sensex climbed over 350 points, reflecting investor optimism amid global economic shifts and domestic market strength.
Market Opens Strong After Fed Move
The benchmark Nifty 50 started the day on a high note, gaining ground right from the opening bell. This surge comes after the US Federal Reserve trimmed its key interest rate by 25 basis points to a range of 4 percent to 4.25 percent. The decision aimed to support the US labor market, which has shown signs of strain.
Experts point out that this rate cut could boost global liquidity, benefiting emerging markets like India. Investors in Mumbai reacted positively, pushing the Sensex up by more than 350 points in early trading. Broader indices also joined the rally, with mid-cap and small-cap stocks showing solid advances.
Market watchers note that the Fed’s hints at two more rate cuts in 2025 add to the upbeat mood. This outlook aligns with recent trends where lower US rates have encouraged foreign investments into Indian equities.
Key Support and Resistance Levels for Nifty 50
Nifty remains in an uptrend, with strong support near 25,150, based on previous swing highs from daily charts. On the upside, resistances at 25,550 and 25,670 are critical levels to monitor, according to technical analysts.
If the index breaks above 25,600 decisively, it could aim for new highs around 25,700 or higher. Traders advise watching volume for confirmation of any breakout.
Support zones like 25,150 to 25,200 offer a safety net against short-term dips. Recent sessions have seen Nifty hold above these levels, supported by buying in sectors such as banking and IT.
The overall trend stays positive, but volatility might increase if global cues shift. For now, the momentum favors buyers.
| Level Type | Nifty 50 Value | Potential Impact |
|---|---|---|
| Support | 25,150 | Strong buying interest expected here |
| Resistance | 25,550 | Breakout could lead to quick gains |
| Next Resistance | 25,670 | Path to all-time highs if crossed |
| Immediate Support | 25,200 | Cushion for minor pullbacks |
Impact of India-US Trade Deal Talks
Ongoing India-US trade negotiations have sparked fresh excitement. Reports suggest progress in removing additional tariffs, which could open doors for Indian exports in key sectors like textiles and pharmaceuticals.
This development ties into broader economic ties, with both nations aiming for a balanced deal. Positive outcomes from these talks could lift market sentiment further, especially for export-oriented companies.
Analysts believe a successful agreement might reduce trade barriers, boosting India’s GDP growth. Combined with the Fed’s rate cut, this creates a favorable environment for Indian stocks.
Traders are eyeing sectors that stand to gain, such as manufacturing and services. The talks, now in their sixth round, show commitment from both sides to resolve long-standing issues.
Recent events, like high-level meetings between officials, underline the momentum. If tariffs drop, it could lead to increased foreign direct investment in India.
Top Stocks to Buy or Sell Today
Market experts have picked several stocks for intraday trading on Thursday. These recommendations factor in current trends, technical setups, and the broader market rally.
- L&T Finance Ltd: Shows bullish patterns with potential upside to new highs.
- Hyundai Motor India Ltd: Gaining from auto sector strength amid positive global cues.
- Punjab National Bank: Banking stocks lead the charge, with support from rate cut benefits.
- Kirloskar Pneumatic Company Ltd: Industrial demand drives this pick for short-term gains.
- Hero MotoCorp Ltd: Two-wheeler segment benefits from consumer spending recovery.
- Bajaj Consumer Care Ltd: FMCG resilience makes it a safe bet in volatile times.
- Paradeep Phosphates Ltd: Agri-inputs sector poised for growth with trade deal hopes.
- Banco Products (India) Ltd: Auto ancillary play with strong fundamentals.
These selections come from detailed analysis by firms like Choice Broking and Anand Rathi. Traders should set stop-losses to manage risks.
Broader Market Trends and Sector Performance
Wednesday’s close saw Nifty at 25,330.25, up 0.36 percent, with Bank Nifty gaining 0.63 percent. Sectors like IT, auto, and oil and gas led the pack, while metals lagged.
Broader indices performed well, with small-caps up 0.68 percent. This indicates healthy participation across market caps.
Looking ahead, foreign portfolio investors turned net buyers, injecting funds after recent sales. Domestic institutions continue to support the rally.
Global markets, including Asia, opened positive, echoing Wall Street’s response to the Fed’s actions. Gold and silver hit highs, signaling safe-haven demand amid uncertainties.
What Investors Should Watch Next
The Fed’s move sets the stage for potential easing by other central banks, including India’s RBI. This could lower borrowing costs and spur economic activity.
In the short term, focus on US economic data releases and any updates from India-US talks. Volatility might rise around key levels, so diversified portfolios help.
Experts recommend staying invested in quality stocks while monitoring global risks like geopolitical tensions.
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