India’s stock market surged to a 10-week high on Thursday, driven by gains in IT and pharmaceutical sectors. The rally followed the U.S. Federal Reserve’s decision to implement a quarter-point rate cut and indications of easing trade tensions. The Nifty 50 index climbed 0.37% to 25,423.60, while the BSE Sensex rose 0.39% to 83,013.96. IT and pharmaceutical stocks, which derive significant revenue from the U.S., saw notable increases of 0.8% and 1.5%, respectively. Biocon and Natco Pharma further boosted the pharma index with gains of 4% and 3.3%, supported by favorable regulatory developments in the U.S. Twelve out of 16 major sectors recorded gains, with small-cap and mid-cap indices adding 0.3% and 0.4%, respectively. The Fed’s rate cut, its first this year, has sparked optimism among investors, though uncertainty remains about the pace of future monetary easing. Market analyst Om Ghawalkar noted that the decision could attract foreign institutional investments and bolster investor confidence. Additionally, chief economic advisor V. Anantha Nageswaran hinted at potential reductions in U.S. tariffs on certain Indian imports, further supporting market sentiment. The Nifty 50 has closed in positive territory in 11 of the last 12 sessions, now trading just 3.25% below its September 2024 peak. However, Cohance Lifesciences saw a 5.6% decline after a block deal involving an 8.9% stake at a discounted price.
India’s stock benchmarks hit 10-week highs on Fed rate cut, optimism over US trade talks
