Nifty, Sensex open higher on Fed rate decision, oil price decline

Markets at open: The Indian stock market kicked off the trading day with a surge of optimism, building on the momentum generated by the US Federal Reserve's decision to maintain interest rates and a notable drop in global oil prices. 

The blue-chip S&P BSE Sensex was trading 154.80 points or 0.21 per cent higher at 74,637.58, while the broader NSE Nifty 50 climbed 41.45 points or 0.18 per cent at 22,646.30 as of 9:18 am.

BPCL, M&M, Shriram Finance, Asian Paints, Tata Motors, and SBI Life, are among the top gainers, while Kotak Bank, Hindalco, Maruti, DivisLab, Bharti Airtel, and Wipro are among the top losers in early trade.

“The Federal Reserve said Wednesday it is holding interest rates at their current levels, as hotter-than-expected inflation data continues to push back the timing of the first rate cut. Nifty opening at 22,600 negative 38 points, max pain for today’s weekly expiry at 22,800 indicates a volatile session on the weekly expiry day. BankNifty opening at 49,262, negative 134 points, heavy call OI at 49,500 strike and put OI at 49,000 strike defines the range for the index," said Rahul Ghose Founder & CEO, Hedged.in.

Investors welcomed the decision by the US Federal Reserve to keep interest rates unchanged, signalling potential delays in future rate cuts. This move instilled confidence in the market, indicating stability in monetary policy and potentially providing a boost to investor sentiment.

Moreover, the drop in global oil prices to a near-seven-week low overnight was seen as a positive development for India, the world's third-largest importer and consumer of oil. This decline typically softens inflation expectations, further contributing to the positive market sentiment witnessed at the opening.

The optimism was further fuelled by robust domestic auto sales figures, particularly in the wake of reports suggesting increased car sales by industry giants in March.

Stocks to watch

• Jindal Stainless: The company announced on Wednesday its plans to invest nearly Rs 5,400 crore for acquisitions and capacity expansion.
• Adani Wilmar and Adani PowerADAN.NS: Both entities reported a rise in their fourth-quarter profits on Wednesday.
• Godrej Industries, Godrej Properties, Godrej Consumer: The Godrej family disclosed ownership realignment of shareholdings in Godrej companies.
• Kotak Mahindra Bank: The private lender announced the resignation of its joint managing director KVS Manian on Tuesday, after two months in the role.
• Key Earnings Reports: Adani Ports, Adani Enterprises, Coal India, Coforge