Mumbai: Benchmark stock indices Sensex and Nifty rebounded on Thursday, cutting short a three-day falling streak following buying in auto and metal stocks and a rate cut by the US Federal Reserve.
Rebounding from its early lows, the 30-share BSE Sensex climbed 426.86 points or 0.51 per cent, to settle at 84,818.13. The 50-share NSE Nifty appreciated by 140.55 points, or 0.55 per cent, to close at 25,898.55.
Among the Sensex constituents, Eternal, Tata Steel, Kotak Mahindra Bank, UltraTech Cement, Maruti Suzuki India, Sun Pharmaceuticals, Tech Mahindra, HDFC Bank, Tata Motors PV, Infosys, Trent, M&M, Reliance Industries Ltd (RIL) and HCL Tech were the gainers.
However, Asian Paints, Bharti Airtel, Bajaj Finance, PowerGrid, Axis Bank, ICICI Bank and Titan were among the laggards.
Broader markets rebounded, with the BSE midcap gauge rising 0.79 per cent and the smallcap index by 0.51 per cent.
Among sectoral indices, Metal rose the most by 1.14 per cent, Auto by 1.08 per cent, Commodities by 0.94 per cent, IT and Telecom by 0.89 per cent each, Focussed IT by 0.87 per cent, Consumer Discretionary by 0.86 per cent, Healthcare by 0.77 per cent and Realty by 0.71 per cent.
Oil & Gas was the only laggard.
As many as 2,397 stocks advanced, while 1,786 declined and 158 remained unchanged on the BSE.
Meanwhile, The Federal Reserve on Wednesday cut its benchmark interest rate by a quarter point for the third consecutive meeting, bringing it down to about 3.6 per cent — the lowest in nearly three years.
However, Chair Jerome Powell indicated that policymakers may pause further reductions while they assess economic conditions. Updated quarterly projections showed officials expect only one additional rate cut in 2026.
Powell said the Fed would “carefully evaluate incoming data” and is “well positioned to wait,” noting that the current rate is nearing a level that neither slows nor stimulates growth. Lower Fed rates typically ease borrowing costs for mortgages, auto loans, and credit cards, though broader market forces also influence them.
The decision exposed rare internal divisions: three officials dissented — the most in six years. Two preferred no change, while Stephen Miran, appointed by Trump, pushed for a deeper, half-point cut.
The split underscores growing tension ahead of December’s meeting, with officials divided between prioritising job gains and holding rates steady until inflation, still above the 2 per cent target, cools further.
Powell ruled out a rate hike next year and said the economy remains resilient, supported by strong consumer spending, business investment in AI infrastructure, and rising worker productivity.