Sensex, Nifty end higher after US Fed's 50 bps rate cut; NTPC gains

The S&P BSE Sensex ended 236.57 points higher at 83,184.80, while the NSE Nifty50 settled 38.25 points higher at 25,415.80. Both the indices had hit fresh all-time highs in early trade.

In Short

• Sensex and Nifty hit all-time high in early trade
• Banking, financials gain as IT sector encounters profit booking
• Smallcap, midcap stocks plunge despite benchmark indices closing higher

Benchmark stock market indices ended Thursday’s trading session on a positive note as the US Federal Reserve started its monetary easing cycle with a bigger-than-expected 50 bps rate cut.

The S&P BSE Sensex ended 236.57 points higher at 83,184.80, while the NSE Nifty50 settled 38.25 points higher at 25,415.80.

Both the indices had hit fresh all-time highs in early trade.

While the benchmark indices gained, broader market indices that include smallcap and midcap stocks fell sharply, impacting many PSU stocks from across sectors.

Nifty Bank and Nifty Financial Services indices gained, but Nifty IT fell due to the concerns surrounding the 50 bps rate cut. Many analysts also attributed this to profit booking in IT stocks.

The top five gainers on the Nifty50 were NTPC, Titan, Nestle India, Kotak Mahindra Bank and Tata Consumer Products. On the other hand, the top drags were BPCL, Coal India, ONGC, Adani Ports and Shriram Finance.

Vinod Nair, Head of Research, Geojit Financial Services, said, “The benchmark indices concluded with a minor gain after hitting record highs post the US FED's more than expected interest rates cut of 50 bps and hinted for further reduction.”

“The substantial rate cut sparked concerns over global slowdown, resulting in profit booking in mid & small cap trading at premium valuation. Meanwhile, domestic heavyweight sectors like banking and FMCG saw buying interest, driven by foreign inflows and the RBI's monetary easing expected in October,” he added.

Meanwhile, Ajit Mishra – SVP, Research, Religare Broking Ltd, said, “Among key sectors, banking and financials are demonstrating resilience, while other sectors are trading with mixed trends. Traders are advised to maintain positions on both sides and focus more on index heavyweights.”