Sensex Surges 500 Points as US Fed Holds Rates Steady, IT Stocks Rally
Indian stock markets opened higher on Thursday, with the Sensex gaining over 400 points, driven by the US Federal Reserve’s decision to maintain interest rates and a strong rally in IT stocks.
The S&P BSE Sensex climbed 415.38 points to 75,864.43, while the NSE Nifty50 rose 116.55 points to 23,024.15 by 9:24 AM on March 20, 2025. The gains marked the fourth consecutive day of positive momentum for Indian benchmark indices.
IT stocks spearheaded the early rally on Dalal Street, buoyed by stable global cues following the US Fed’s decision. Investors showed renewed confidence in the sector, contributing significantly to the upward movement of the indices.
The US Federal Reserve maintained its interest rates, projecting a 2025 GDP growth of 1.7% and inflation at 2.8%. Fed Chief Jerome Powell indicated that future policy could adjust based on evolving economic conditions, adding an element of uncertainty.
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Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “The Fed holding rates and projecting lower growth at 1.7% and higher inflation at 2.8% for 2025 are on expected lines. The market will be on a wait-and-watch mode till April 2, when reciprocal tariffs are declared.”
Vijayakumar highlighted potential global uncertainties, particularly around US President Donald Trump’s tariff policies. He suggested that markets might remain cautious until clarity emerges on the proposed tariffs set to take effect on April 2.
Investors are likely to monitor global developments and domestic economic indicators in the coming weeks. The outcome of the US tariff announcements in April could play a pivotal role in shaping market trends, with analysts expecting a cautious approach until then.
