Mumbai, Sep 17: Indian equity markets ended Thursday’s session on a largely steady note as investors assessed the latest US Federal Reserve rate decision and its possible impact on global markets.
The Sensex slipped 21.86 points, or 0.03 per cent, to close at 74,314.59, while the Nifty 50 rose 53 points, or 0.23 per cent, to settle at 23,270.60. The modest movement reflected cautious trading as investors continued to assess the outlook for interest rates and global liquidity.
The US Federal Reserve raised its benchmark interest rate by 25 basis points, taking the target range to 3.75-4 per cent. The move, along with the possibility of another increase, kept investors focused on the direction of US monetary policy and its impact on emerging markets.
Higher US rates can influence global fund flows, bond yields and currency movements. For Indian markets, investors are also keeping a close watch on crude oil prices, which remain elevated and could add pressure to inflation, corporate costs and the country’s import bill.
Despite the cautious mood, buying was visible across several parts of the domestic market. Small- and mid-cap stocks gained around 0.8 per cent and 0.9 per cent, respectively, while 12 of the 16 major sectoral indices closed higher. The auto index gained about 1 per cent during the session.
Tata Group stocks were among the notable movers, with Tata Motors, Tata Steel and Tata Investment gaining between 2.3 per cent and 5.5 per cent. The movement in individual stocks provided some support to the broader market even as investors remained selective.
The market was also influenced by strong activity in the primary market. The NSE’s own public issue opened for subscription, adding another layer to investor allocation decisions as money continues to flow into new listings and public offerings.
For businesses, the global interest-rate environment remains important because higher borrowing costs can influence investment decisions, financing expenses and valuations. At the same time, domestic demand and company-specific developments continue to provide support to selected sectors.
Thursday’s session therefore reflected a market balancing global concerns with domestic opportunities. With the Fed’s policy outlook, crude prices and foreign fund flows remaining key factors, investors are likely to continue watching global cues closely in the coming sessions.