Benchmark equity indices finished higher on Thursday after erasing early losses, helped by a late surge in information technology (IT) stocks driven by renewed expectations of an interest rate cut by the US Federal Reserve. The S&P BSE Sensex rose 158.51 points to end the session at 85,265.32, while the NSE Nifty50 advanced 47.75 points to settle at 26,033.75.
According to Vinod Nair, Head of Research at Geojit Financial Services, the domestic market largely traded flat as investors navigated mixed global signals and stayed cautious ahead of the Reserve Bank of India’s policy announcement. He noted that initial value buying was capped by a record-low rupee and continued foreign institutional investor outflows. However, easing expectations of an immediate RBI rate cut helped the currency recover slightly, which in turn stabilised the indices toward the closing hours. Nair highlighted that IT stocks outperformed the broader market as optimism surrounding potential Fed rate cuts and favourable currency conditions boosted investor confidence in the sector.
Tata Consultancy Services led the list of top performers with a gain of 1.54%. Tech Mahindra followed with an increase of 1.28%, while Infosys climbed 1.24%. HCLTech added 0.89%, and Bharti Airtel contributed a gain of 0.83%, helping the benchmark index register a positive close even as several other sectors remained under pressure.
On the losing side, Maruti Suzuki was the weakest performer of the session, declining 0.71%. Eternal slipped 0.69%, Kotak Mahindra Bank fell 0.53%, Titan dropped 0.44%, and ICICI Bank dipped 0.35%. Selling pressure in these stocks limited broader upside momentum.
Ajit Mishra, SVP of Research at Religare Broking Ltd., said that persistent weakness in the rupee continues to weigh on market sentiment, while investors remain wary ahead of the Monetary Policy Committee’s decision. He added that the global backdrop remains uncertain and failed to trigger a strong market response. With a 25 basis point rate cut already widely factored in, Mishra suggested that the MPC’s commentary will be more important in shaping the future direction of the market.
