Stock market today: BSE Sensex ends almost 900 points up; Nifty50 above 23,150 – top reasons for D-Street rally

Indian benchmark indices, Nifty50 and Sensex, continued their upward trajectory for the fourth consecutive session, supported by positive performance in banking and IT sectors. (AI image)

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, rallied strongly in trade on Thursday. While BSE Sensex rose around 1,000 points intraday, Nifty50 crossed the 23,200 mark. BSE Sensex ended the day at 76,348.06, up 899 points or 1.19%. Nifty50 closed at 23,165.80, up 258 points or 1.13%. Indian stock market is reflecting the upward movement on Wall Street where the Dow Jones increased by 1%.
Indian benchmark indices, Nifty50 and Sensex, continued their upward trajectory for the fourth consecutive session, supported by positive performance in banking and IT sectors.
Global stock markets, including those in India, responded positively to the latest US Federal Reserve policy position, which indicated two rate reductions in 2025 and a decelerated balance sheet reduction. The positive market sentiment emerged from US Federal Reserve Chair Jerome Powell’s reassuring stance on inflation, despite potential tariff risks. He emphasised that any price increases stemming from tariffs would likely be short-lived.

Why BSE Sensex, Nifty50 rose today:

1) Fed maintains rate cut outlook for 2025
The U.S. Federal Reserve retained current interest rates and confirmed its forecast of two quarter-point rate reductions by the end of 2025, consistent with its December assessment.
The Fed revised its economic growth projections downward and increased inflation expectations, considering the effects of tariffs implemented by U.S. President Donald Trump. With tariffs scheduled for implementation in early April, authorities are assessing their influence on inflation and economic parameters.
Reduced U.S. interest rates result in dollar depreciation and lower Treasury yields, increasing the appeal of emerging markets, including India, to international investors.
“The Fed holding the rates and projecting lower growth at 1.7% and higher inflation at 2.8% for 2025 are on expected lines. More significant is the Fed chief’s comment that policy can move either way depending on the evolving outlook. The evolving outlook is highly uncertain due to Trump’s tariff tantrums,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
2) IT Sector Leads Market Surge
The Nifty IT index recovered significantly with a 2% increase today, following its 16.4% decline in 2025.
Major IT firms with substantial US revenue streams experienced notable gains. HCL Technologies, Tata Consultancy Services, Wipro, and Infosys each advanced approximately 2%. These technology companies collectively added about 200 points to the Sensex’s upward movement.
3) Global Markets Boost Indian Shares
Indian equities advanced alongside Asian markets on Thursday, influenced by positive Wall Street performance. The US Federal Reserve’s confirmation of two planned rate reductions this year, whilst dismissing Trump’s tariff concerns, enhanced market confidence.
Australian equities rose 1%, accompanied by continued gains in US futures trading. Nasdaq futures increased by 0.62%, whilst S&P 500 futures advanced 0.46%.
4) US Treasury and Currency Impact
US Treasury yields showed significant reduction, with the 10-year yield decreasing to 4.245% from 4.5% in mid-February, and the 2-year yield falling to 3.993% from 4.28%. The US Dollar Index registered 103.36.
The combination of reduced US dollar strength and lower bond yields has increased the appeal of Indian equities for international investors, suggesting potential increased foreign investment inflows.