On Thursday, the equity benchmark indices in India closed almost 1% higher, driven by continued foreign fund inflows and buying in index majors HDFC twins and Reliance Industries. The 30-share BSE Sensex gained 555.95 points or 0.91% to settle at 61,749.25, rallying 604.61 points or 0.98% to 61,797.91 during the day. The broader NSE Nifty advanced 165.95 points or 0.92% to close at 18,255.80.

Investors were optimistic due to the US Federal Reserve softening its stance on future rate hike prospects, which triggered a fresh bout of buying in banking stocks. With India’s growth indicators showing good signs of revival and crude oil prices staying lower, investors are betting big on local equities, despite the haze over global economic growth persisting. Bajaj Finance, HDFC, HDFC Bank, Bajaj Finserv, Asian Paint, State Bank of India, Tata Consultancy Services, Bharti Airtel, Reliance Industries, and Tata Steel were the biggest gainers among the Sensex firms, while IndusInd Bank, Nestle, Power Grid, ITC, Tata Motors, and Mahindra & Mahindra were the major laggards.

The BSE smallcap gauge jumped 0.83% and the midcap index climbed 0.82% in the broader market. Among the indices, financial services rallied 1.42%, telecommunication jumped 1.40%, bankex increased by 0.86%, industrials rose 0.75%, and commodities and metal increased by 0.74%. The only laggard was FMCG.

Foreign Institutional Investors (FIIs) were net buyers on Wednesday, purchasing equities worth Rs 1,338 crore, according to exchange data. In Asian markets, Shanghai and Hong Kong settled in the green, while Seoul ended lower. Equity markets in Europe were trading lower, and the US markets had ended in negative territory on Wednesday, despite the Fed raising its key interest rate by a quarter percentage point to the highest level in 16 years.