Benchmark Indices to Open Higher Tracking US Market Rally After Fed Kept Rates Unchanged

On March 19, 2025, foreign institutional investors (FII) bought shares worth Rs 1,096.50 crore, while domestic institutional investors (DII) bought shares worth Rs 2,140.76 crore.

Pre-Market Update at 7:45 AM: Sensex and Nifty 50 are set to open higher on Thursday, tracking a global market rally following the US Federal Reserve’s policy announcement. Asian markets traded in the green, while US indices surged overnight after the Fed’s decision. The Federal Open Market Committee (FOMC), led by Chair Jerome Powell, kept interest rates unchanged and indicated a potential 50 basis points rate cut later this year.

Gift Nifty was hovering near 23,067, reflecting a premium of approximately 77 points over the previous close of Nifty futures, signalling a higher opening for Indian equity indices.

US markets closed higher on Wednesday after the Federal Reserve maintained interest rates as expected. The Dow Jones Industrial Average climbed 383.32 points (0.92 per cent) to 41,964.63, while the S&P 500 advanced 60.63 points (1.08 per cent) to 5,675.29. The Nasdaq Composite saw the biggest gain, rising 246.67 points (1.41 per cent) to settle at 17,750.79.

The US Federal Reserve kept its benchmark interest rate steady in the 4.25 per cent - 4.50 per cent range and signaled the possibility of two quarter-point rate cuts later this year. Additionally, the central bank revised its inflation forecast for 2025 upward while lowering its economic growth projections. 

Meanwhile, China maintained its benchmark lending rates for the fifth consecutive month, in line with market expectations, with the one-year loan prime rate at 3.1 per cent and the five-year rate at 3.6 per cent, while the 7-day policy rate remained unchanged at 1.5 per cent. 

On the geopolitical front, US President Donald Trump and Ukrainian President Volodymyr Zelenskyy held a one-hour discussion, described by the White House as “fantastic,” where both leaders emphasized collaboration to resolve the ongoing Russia-Ukraine conflict. Zelensky expressed gratitude for US support, and it was agreed that technical teams would convene in Saudi Arabia soon.

Asian markets moved higher on Thursday, taking cues from Wall Street’s strong performance overnight after the US Federal Reserve’s policy announcement. With Japan’s markets shut for a holiday, South Korea’s Kospi advanced 0.64 per cent, while the Kosdaq edged up 0.55 per cent. Meanwhile, futures linked to Hong Kong’s Hang Seng index signaled a muted start.

Crude oil prices moved higher following the US Federal Reserve's policy announcement, supported by data indicating strong fuel demand. Brent crude climbed 0.45 per cent to USD 71.10 per barrel, while US West Texas Intermediate (WTI) crude futures edged up 0.22 per cent to USD 67.31.

The dollar was at 103.03, while USD/INR was trading at 86.33.

On March 19, 2025, foreign institutional investors (FII) bought shares worth Rs 1,096.50 crore, while domestic institutional investors (DII) bought shares worth Rs 2,140.76 crore.

Stocks that are banned for trading in the F&O segment on March 20, 2025, are IndusInd Bank, Hindustan Copper, SAIL, etc.

Disclaimer: The article is for informational purposes only and not investment advice.