PTI mumbai

Stock markets advanced for the third consecutive day on Thursday, with the benchmark Sensex gaining 320 points to close 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.Shares of pharma, IT and financial companies edged higher while realty and energy stocks ended on a muted note. The market sentiment was bolstered primarily by the US Federal Reserve's rate cut, which boosted risk sentiment globally, analysts said.

Among Sensex firms, Zomato-owner Eternal rose the most by 2.96 per cent on positive bets by brokerages. Sun Pharma, Infosys and HDFC Bank rose more than 1 per cent. HCL Tech, Hindustan Unilever, Power Grid, ITC and Adani Ports were also among the gainers.

"Indian equities extended gains after the Fed's 25 bps rate cut and indication for further easing. IT and Pharma outperformed on expectations of higher spending and stronger export prospects. Although elevated valuations and a firm dollar index prompted intermittent profit-booking, comfort in private banks and midcap helped in sustaining the positive bias and regain the trend," Vinod Nair, Head of Research, Geojit Investments Limited, said.