Sensex Jumps Over 500 Points, Nifty Reclaims 23,900 as Fed Rate-Cut Hopes Lift Asian Markets

Indian equity benchmarks opened sharply higher on Friday, riding a wave of optimism that swept across Asian and US markets after a Federal Reserve official signaled the central bank was inclined to hold interest rates steady rather than risk further tightening.

The BSE Sensex jumped as much as 504 points, or 0.66 percent, in early trade to touch levels near 76,657, before easing slightly to trade around 76,650. The NSE Nifty 50 climbed in tandem, crossing the psychologically significant 23,900 mark and touching an early high near 23,930, up roughly 57 points from the previous close. The rally extended gains from Thursday's Wall Street session, where the Dow Jones Industrial Average and S&P 500 both closed more than 1 percent higher and the Nasdaq Composite advanced 1.4 percent.

What's driving the rally

The catalyst was a set of comments from Federal Reserve Governor Christopher Waller, who indicated the central bank could hold rates steady at current levels provided inflationary pressures did not surprise to the upside. Markets have been on edge in recent weeks over the prospect of renewed rate hikes, and Waller's comments were widely read as reducing that risk, at least for the near term. The dovish signal rippled quickly through global markets, with Japan's Nikkei 225 and South Korea's Kospi both posting strong gains in Friday trade as investors repriced expectations for US monetary policy.

Sector and stock moves

Information technology stocks led the charge on the Nifty, with the sector index rising as much as 0.6 percent in early trade — a notable reversal given IT counters had been among the recent session's laggards as elevated crude prices weighed on sentiment. Tata Consultancy Services, Tech Mahindra and Wipro featured among the top gainers within the Nifty 50 pack. Elsewhere, Bajaj Finserv, Reliance Industries, IndiGo, Trent, TCS and HDFC were among the standout performers, each rising more than 1 percent in early deals, while Eternal, Axis Bank and Asian Paints featured among the session's laggards.

Broader market breadth was firmly positive, with advancing stocks outnumbering decliners by a wide margin on the National Stock Exchange. The Nifty Midcap index traded roughly flat while the Nifty Smallcap index added close to half a percent, suggesting the rally was not confined to large-cap names alone.

Currency and commodities

The rupee opened modestly firmer against the US dollar, building on recent stability even as elevated crude oil prices continued to pose a risk to the currency's outlook. Brent crude held above $96 a barrel, keeping oil marketing companies in focus given the impact of high crude prices on their margins.

The bigger picture

Friday's bounce comes after a choppy week for Indian markets, which had snapped a multi-session losing streak earlier before slipping again on lingering worries tied to elevated crude prices and geopolitical tensions in the Gulf. Whether Friday's gains mark a durable turnaround or another temporary reprieve will likely hinge on how incoming US economic data, particularly the closely watched jobs report, shapes expectations for the Fed's next policy move.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.