Stock markets end higher after US Fed rate cut; log gains for 3rd day

Mumbai, Sep 18 (PTI) Stock markets closed higher for the third consecutive day on Thursday, with the benchmark Sensex gaining 320 points to end above 83,000 level after the US Federal Reserve cut its key interest rate by 25 basis points and signalled the possibility of two additional rate reductions this year.

The 30-share BSE Sensex rallied 320.25 points or 0.39 per cent to settle at 83,013.96. During the day, it jumped 447.5 points or 0.54 per cent to 83,141.21.

The 50-share NSE Nifty climbed 93.35 points or 0.37 per cent to 25,423.60.

Among Sensex firms, Eternal, Sun Pharma, Infosys, HDFC Bank, HCL Tech, Hindustan Unilever, Power Grid, ITC and Adani Ports were the major gainers.

However, Tata Motors, Trent, Bajaj Finance and Asian Paints were among the laggards.

In Asian markets, South Korea's Kospi and Japan's Nikkei 225 index settled over 1 per cent higher while Shanghai's SSE Composite index and Hong Kong's Hang Seng ended more than 1 per cent lower.

Markets in Europe were trading significantly higher. US markets ended on a mixed note on Wednesday.

"On the global front, the US Fed’s 25 bps rate cut lifted investor sentiment," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Global oil benchmark Brent crude dipped 0.56 per cent to USD 67.57 a barrel.

Foreign institutional investors (FIIs) again offloaded equities worth Rs 1,124.54 crore on Wednesday after a day's breather, according to exchange data.

On Wednesday, the Sensex edged higher by 313.02 points or 0.38 per cent to settle at 82,693.71. The Nifty climbed 91.15 points or 0.36 per cent to 25,330.25. PTI SUM MR