Sensex surged 905 points to 74,151, closing up 1.2% after the Federal Reserve announced it would keep interest rates unchanged late Wednesday.
The Fed’s decision to pause rates at the 5.25‑5.50% range lifted risk appetite across Dalal Street, while Brent crude prices hovered near $110 per barrel and the rupee slipped below the 95‑to‑the‑dollar mark.
Foreign portfolio investors (FPIs) added net buying of Rs 944 crore in the secondary market over two sessions, according to provisional NSDL data; domestic funds bought Rs 1,924 crore on the BSE, signalling liquidity support despite the modest FPI outflow on Thursday.
Jio Platforms’ shares fractured within the day, touching a record high of Rs 1,490 before retreating to an intraday low of Rs 1,381 and ultimately closing at Rs 1,423, up marginally from Rs 1,417.
Vinod Nair, head of research at Geojit Investments, said the index’s rally was driven by the Fed pause, easing in crude prices and renewed institutional buying. “Risk appetite improved despite a challenging backdrop of elevated input costs and geopolitical uncertainty,” he added.
Analysts now look toward the next Fed meeting in June for further confirmation of the rate outlook, while monitoring rupee volatility and domestic bond yields that could temper the current gains. The market remains poised for sustained momentum if the Fed’s stance holds steady and institutional buying continues.