Indian benchmark indices closed with positive gains on Thursday following the decision of the US Federal Reserve to maintain interest rates steady for the sixth consecutive time. The Nifty 50 index ended the day up 43 points at 22,648 points, while the BSE Sensex gained 128.33 points to finish at 74,611.11 points. Among the top gainers in the Nifty 50 index were BPCL, Power grid, Asian paints, Tata motors, and Bajaj auto, while Kotak bank, Tata consumers, and Bharti Airtel were among the top losers.
Shares of major auto sector companies such as Mahindra, Bajaj auto, and Tata motors rallied on Thursday in response to the April auto sales numbers. Mahindra and Mahindra’s stock price reached an all-time high of Rs 2204 and closed at 2183.80. In April, Mahindra reported a 3 percent growth in passenger vehicle sales, with 70,471 vehicles sold compared to 68,413 in March. The two-wheeler segment also saw positive growth in sales, with companies like Bajaj, Hero, TVS, and Eicher all showing growth percentages ranging from 6 to 9 percent.
The Kotak bank share price declined following reports of the sudden departure of Joint MD KVS Mahajan from the company. The Reserve Bank of India (RBI) had recently imposed restrictions on the bank, preventing it from onboarding new digital customers and issuing fresh credit cards. Market expert Vinod Nair, Head of Research at Geojit financial services, noted that the benchmark indices saw moderate gains in line with global trends after the US Federal Reserve’s decision to maintain interest rates. He mentioned that the auto sector outperformed on positive commentary from companies regarding recent volume numbers.
During the latest meeting, the US Federal Reserve announced that it would not raise the key interest rate, currently set at 5.25-5.50 percent, for the sixth consecutive time. Federal Reserve Chair Jerome Powell indicated that another rate hike is unlikely at this time, with the focus shifting towards sustaining its restrictive monetary policy stance. Meanwhile, in the commodities market, oil prices faced downward pressure due to an increase in US crude inventories, while gold prices saw an uptick amid market developments.
