Indian stock indices showed strength on Thursday following a global stock surge spurred by the US Federal Reserve’s decision to maintain its projection of three rate cuts this year during its latest monetary policy review. By 10:09 am, the Sensex stood at 72,724.62 points, 622.93 points or 0.86 percent, while the Nifty reached 22,034.05 points, rising by 194.95 points or 0.89 percent.
Among the Nifty 50 stocks, 47 advanced while the remaining were in the red at the time of reporting. The Fed, in its March meeting, opted to keep the key interest rate steady at 5.25-5.50 percent for the fifth consecutive time, maintaining its course for three interest rate cuts this year and expressing confidence in sustained economic growth.
The Fed aims to bring down consumer inflation to its target of 2 percent, even as current inflation in the US exceeds 3 percent. The market responded positively to the Fed’s decision, with US indices reaching new highs, as VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted.
Meanwhile, foreign portfolio investors continued to be net buyers in India, which contributed to the upbeat market sentiment. In February and March, they reversed their trend from January, becoming net buyers and injecting optimism into the Indian stock market.
In March alone, foreign investors purchased Indian stocks worth Rs 41,668 crore, according to the latest data from the National Securities Depository Limited (NSDL).