Indian markets gained after the U.S Fed kept rates unchanged
May 02, 2024
New Delhi [India], May 2 : Indian benchmark indices closed with gain on Thursday after the US Federal Reserve kept the interest rates unchanged for the sixth straight time.
The Nifty 50 index gained 43 points to close at 22,648 points while the BSE Sensex gained 128.33 points to close 74,611.11 points.
In the Nifty 50 index BPCL, Power grid, Asian paints, Tata motors and Bajaj auto made into the list of top gainers while the Kotak bank, Tata consumers, Bharti Airtel made into the list of top losers.
The shares of major auto sector companies Mahindra, Bajaj auto and Tata motors rallied on Thursday after the announcement of the April auto sales numbers.
The Mahindra and Mahindra share price touched all time high of Rs 2204 and closed at 2183.80 on Thursday.
In the April passenger vehicle sales Mahindra has gained and registered a positive growth of 3 percent with vehicle sales at 70,471 up from 68,413 in March.
The two-wheelers segment has also registered a positive growth in sales in the month of April 2024 as compared to March. Bajaj, Hero, TVS and Eicher all have shown a growth of 6, 9, 8 and 8 per cent respectively.
The Kotak share declined after the media reports of sudden exit of the Joint MD KVS Mahajan from the company, last week RBI restricted the bank from onboarding new digital customers and issuing fresh credit cards.
"Benchmark indices saw moderate gains, mirroring global trends after the FED decided to maintain its interest rate, as widely accepted. The US central bank hinted at potential rate cuts while remaining cautious about sustaining the high inflation trend said Vinod Nair, Head of Research, Geojit financial services.
He further added "The broader market largely traded range bound, while positive commentary from the auto companies on recent volume numbers led the sector to outperform."
The US Federal Reserve, in its latest monetary policy meeting, voted to leave the key interest rate unchanged at 5.25-5.50 per cent, keeping the policy rate unchanged for the sixth straight time on the trot.
US Federal Reserve Chair Jerome Powell said a further interest rate hike from here is unlikely and the central bank is currently focused on its restrictive monetary policy stance.
In the commodities market, oil prices remained under pressure due to a surge in US crude inventories, while gold witnessed an advance amid market developments.
