Indian Equities Edge Higher Amid Tightening Rate Environment
The Indian equity market inched higher on Thursday as investors assessed the US Federal Reserve's latest policy decision and its implications for global liquidity. The Fed raised its benchmark interest rate by 25 basis points to 3.75%-4%, its first hike since 2023, but kept the possibility of another rate increase this year on the table.
The central bank's projections also indicated that the rate environment would remain tight in 2026, with a range of views among policymakers. However, selective buying helped the Nifty close above the 23,250 mark, with realty and pharma stocks in demand while banks and oil & gas stocks declined.
Bharat Electronics was one of the major Nifty movers, up 2.51%, followed by Tata Steel at 2.34% and Eternal at 1.69%. Crude oil prices provided some relief during the session, with Brent crude easing below $104 per barrel mark despite geopolitical risks in the Middle East.