The BSE benchmark Sensex climbed 128 points or 0.17% to close at 74,611, while the broader NSE Nifty advanced by 43 points or 0.19% to settle at 22,648.
Fed Chair Jerome Powell late on Wednesday said a rate hike was unlikely, but reiterated that a rate cut would be considered only if inflation in the economy eased further.
HDFC Bank, Power Grid, Asian Paints, TCS, and Tata Motors led the gains on the Sensex, while ICICI Bank, Kotak Bank, Bharti Airtel, and Axis Bank exerted downward pressure on the index. HDFC Bank alone accounted for a 109-point increase in the Sensex.
US rate sensitive, Nifty IT index ended flat after the Fed decision. Higher interest rates have been weighing on India’s IT sector, as it leads to in lower client spending in the US, a key market.Meanwhile, global oil prices fell to a nearly seven-week low overnight, seen as a positive sign for inflation expectations in India, the world’s third-largest importer and consumer.The Nifty Oil & Gas index gained 0.8%. Hindustan Petroleum and Bharat Petroleum, rose 8% and 4.6%, respectively to lead gains in the energy index.Meanwhile, shares of Kotak Mahindra Bank fell 3%, the top laggard among Sensex constituents after the private lender said that its joint managing director KVS Manian resigned after two months in the role.
