Mumbai, Dec 11 (IANS) Indian stock markets bounced back on Thursday, ending a three-day losing streak, after the US Federal Reserve announced a 25-basis-point interest rate cut.
The move boosted investor sentiment and lifted key indices across the board. At the closing bell, the Sensex closed 426.86 points higher at 84,818.13, gaining 0.51 per cent.
The Nifty also moved up 140.55 points, or 0.55 per cent, to finish at 25,898.55.
“For upside continuation, a decisive close above 25,950–26,000 remains essential; such a breakout can open the path towards 26,150–26,250, where the upper channel resistance converges with prior swing highs,” analysts said.
“On the downside, 25,735–25,700 continues to be the make-or-break support, followed by secondary support at 25,600,” market watchers mentioned.
Several major stocks led the recovery. Tata Steel, Eternal, Kotak Mahindra Bank, UltraTech Cement, Maruti Suzuki India, Sun Pharma, Tech Mahindra and TMPV were among the top performers on the Sensex, rising up to 2.5 per cent.
However, Asian Paints, Bajaj Finance, Axis Bank, Power Grid, ICICI Bank and Titan ended the day with losses.
Broader markets also traded strong. The Nifty Midcap 100 index gained 0.97 per cent, while the Nifty SmallCap 100 rose 0.81 per cent -- showing positive momentum beyond the benchmark indices.
Sector-wise, the Nifty Media index was the biggest loser, slipping 0.9 per cent. The Nifty Oil and Gas index also ended slightly lower by 0.03 per cent.
On the positive side, metal and auto shares saw strong buying interest, with the Nifty Metal and Nifty Auto indices rising 1.06 per cent and 1.11 per cent, respectively.
The Pharma and Consumer Durables indices also closed nearly 1 per cent higher, helping support the overall market rebound.
Analysts said that domestic markets rebounded broadly following the Fed’s expected 25-bps rate cut amid high US inflation.
“The decline in US 10-year yields indicates a moderation in future FII outflows, which bolstered sentiment,” experts stated.
--IANS
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