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Sensex, Nifty hit 10-week highs on US Fed rate cut, optimism over India-US trade deal talks
Sensex, Nifty gains firmed up after CEA Anantha Nageswaran said that he expected 50% US tariffs on India to be withdrawn after 30 November.
India's equity benchmarks, Sensex and Nifty 50, rose to a ten-week high today, led by IT and pharma stocks, after the US Federal Reserve delivered its first rate cut of 2025 even as talks of an India-US trade deal continued.
On Thursday, the 30-share S&P BSE Sensex rose 0.39% to 83,013.96 points even as the wider NSE Nifty 50 ended the day 0.37% higher at ₹25,423.60. The Nifty IT and Nifty Pharma indices rose 0.8% and 1.5%, respectively.
The benchmark has closed in the green in 11 out of the last 12 sessions. It is about 3.25% below the record high levels hit in September last year.
India's $283-billion IT industry counts the United States as its biggest export market. Any reduction in interest rate allows their stateside clients to spend more on technology services. In the $55-billion pharma space, Biocon Ltd. and Natco Pharma Ltd. rose 4% and 3.3%, respectively, aided by positive action by the US Food & Drug Administration.
Twelve of the 16 major sectors logged gains. The broader small-caps and mid-caps added about 0.3% and 0.4%, respectively.
On Wednesday, the US Fed lowered its interest rates for the first time this year but signalled a measured approach to further easing of its monetary policy. That clouds the outlook on future rate cuts.
“The Fed's decision is likely to attract fresh inflows from foreign institutional investors and lift overall investor confidence,” Om Ghawalkar, market analyst at online investment platform Share.Market, told Reuters.
Market gains firmed up after India's Chief Economic Adviser V. Anantha Nageswaran said at an event that he expected 50% US tariffs on certain exports to be withdrawn after 30 November.
The reciprocal tariff may come down to a level that New Delhi had been previously anticipating, somewhere between 10% and 15%, he said.
