On Thursday, Indian stocks saw a considerable increase, with investors expressing optimism following the Federal Reserve's dovish stance and hinting at potential rate cuts in 2024. This uptick was largely due to positive indications from global markets, a devalued dollar, and declining bond yields, all of which bolstered investor sentiment after the U.S. Federal Reserve decided to keep interest rates steady for the fifth consecutive meeting and reiterated its prediction of three rate cuts in 2024.
Investors were also buoyed by domestic data that revealed the nation's business activity had grown at the quickest rate in eight months in March, solidifying India's position as the fastest growing major economy. This growth was reflected in S&P Global's Index, the HSBC's flash India Composite Purchasing Manager’s index (PMI), which saw an increase to 61.3 this month from February's final figure of 60.6.
The benchmark S&P BSE Sensex soared by 539.50 points, equivalent to a 0.75 percent increase, ending at 72,641.19. Simultaneously, the broader NSE Nifty index also enjoyed an increase, rising by 172.85 points, or 0.79 percent, to settle at an impressive 22,011.95.
Public sector unit (PSU) stocks were the most significant gainers, with Coal India, Power Grid Corp, BPCL, and NTPC witnessing a 3-4 percent surge. Meanwhile, Tata Steel also experienced a 3.1 percent boost following the company's announcement of the shutdown of coke oven operations at its Port Talbot plant.
