Sensex, Nifty Open Higher After Fed Decision; IT Stocks Remain Under Pressure

Stock Market Today: Sensex, Nifty Open Higher; IT Shares Drag, Midcaps Gain

The Indian stock market began Thursday’s session on a cautious but positive note, with the benchmark indices holding in the green as investors reacted to the US Federal Reserve’s latest interest-rate decision and assessed mixed global market signals.

At 9:32 am, the Nifty 50 was trading at 23,274.80, up 58 points or 0.25%. The Sensex stood at 74,466.31, gaining 131.74 points.

Midcap and Smallcap Stocks Lead

The broader market showed stronger momentum than the benchmark indices during early trade. Nifty Midcap Select climbed 0.46%, while Nifty Midcap 50 advanced 0.34%.

The Nifty Smallcap 100 gained 0.40%, and Nifty Next 50 also rose 0.40%.

Market volatility eased as well, with the India VIX falling 2.62% to 12.82.

Metal, Auto Stocks Among Top Sectoral Gainers

Sector-wise, buying interest was visible across several pockets. Nifty Metal rose 0.50%, making it one of the leading gainers. Nifty Chemicals increased 0.47%, while Nifty PSU Bank and Nifty Auto gained 0.44% and 0.42%, respectively.

However, technology stocks remained weak. Nifty IT declined 0.48% in early trading. Nifty Media fell 0.18%, while Nifty Private Bank was down 0.10%.

Among Sensex constituents, BEL, Eternal and Bajaj Finance featured among the early gainers. HDFC Bank, HCL Technologies, TCS, Infosys and Titan were among the stocks trading in negative territory.

Fed Rate Decision in Focus

Investor attention remained firmly on the US Federal Reserve after it delivered a 25-basis-point rate hike, taking the federal funds target range to 3.75%-4%.

The Fed’s indication that another rate increase could come later this year added to uncertainty in global financial markets. Persistent inflation has also kept the US central bank focused on maintaining tighter monetary conditions.

The latest stance strengthened the US dollar and pushed short-term US Treasury yields higher, factors that can weigh on emerging-market equities.

Rupee, Crude Prices Add to Market Concerns

For Indian equities, currency movements, crude oil prices and US bond yields remain important factors to watch.

The rupee opened at around Rs 96.01 against the US dollar, compared with its previous close of Rs 95.95.

Crude prices, meanwhile, retreated from recent highs, with Brent crude trading near $105 per barrel. Lower oil prices could provide some relief to India’s import bill, although crude remains elevated.

Analysts Expect Cautious Trade

Ponmudi R, CEO of Enrich Money, said the Fed’s latest rate hike and the possibility of another increase could keep Indian equities exposed to volatility.

He pointed to higher Treasury yields, elevated crude prices and rupee weakness as key factors that could influence investor sentiment in the near term.