Nifty closes above 23,250 as selective buying offsets rate hike concerns

The key equity benchmarks 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. The central bank's projections also kept the possibility of another rate increase this year on the table, with the latest projections showing a range of views among policymakers.

The Fed's indication of another rate hike in 2026 kept investors cautious, particularly across rate-sensitive and foreign-portfolio-investment-driven segments. The higher US rate environment supported the dollar and kept pressure on emerging-market currencies.

However, selective buying helped the Nifty close above the 23,250 mark. Realty and pharma stocks were in demand, while banks and oil & gas stocks declined.

The S&P BSE Sensex shed 21.86 points or 0.03% to 74,314.59. The Nifty 50 index added 53 points or 0.23% to 23,270.60.

Bharat Electronics (up 2.51%), Tata Steel (up 2.34%) and Eternal (up 1.69%) were major Nifty movers today.