The Indian stock market ended Thursday’s session, June 18, on a positive note as gains in financial and auto stocks, along with strength in crude-sensitive sectors, offset weakness in technology shares.
Both benchmark indices—the Nifty 50 and the Sensex—closed with gains of more than 0.40%, extending their winning streak to a second consecutive session. The broader markets also ended higher, with the Nifty Midcap 100 and Nifty Smallcap 100 indices advancing 0.40% and 0.47%, respectively.
Most major sectoral indices finished in the green, while Nifty IT emerged as the sole laggard, falling more than 1% after US Federal Reserve policymakers signalled the possibility of a rate hike later this year despite keeping interest rates unchanged.
The US Federal Reserve on Wednesday maintained the federal funds rate in the 3.50%-3.75% range, leaving it unchanged for the fourth consecutive meeting as policymakers sought to balance economic growth with inflation control.
Although rates were left unchanged, several policymakers indicated that a rate hike may be required later this year to bring inflation back toward the central bank’s 2% target. They believe that merely keeping borrowing costs steady may not be sufficient to contain inflationary pressures.
Of the 18 Federal Reserve officials who submitted interest-rate projections, nine now expect rates to rise this year, reflecting concerns that inflation could remain elevated amid higher oil prices following the Iran conflict.
On the geopolitical front, sentiment remained supported after US President Donald Trump reportedly signed a preliminary agreement aimed at ending the conflict in the Middle East, sending Brent crude briefly to its lowest level since the war began.
