Indian stock market picked up, gaining momentum after starting the session flat as key domestic equity indices--Sensex and Nifty--were trading sharply higher. The uptick in the stock market came amid crude prices remaining higher and geopolitical concerns persisting. Meanwhile, value buying and the US Fed's decision to keep the rate unchanged at 3.75-4 per cent seemed to be key triggers. 

However, analysts believe that the Fed decision won’t be a significant easing for the Indian stock market. They believe that elevated crude oil prices and higher US bond yields will continue to be strong headwinds for domestic equities. 

"The Fed holding rates as expected is mildly positive for equity markets, globally. However, from the Indian perspective, the headwinds continue to be strong. The 10-year US bond yield continues to hover around 5%, and there are no signs of easing in crude prices,” said Dr V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. 

Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, says, “The US 10-year Treasury yield consequently moved to around 5.02%. This indicates that the policy pause has not materially loosened global financial conditions; unless yields stabilise below recent levels, dollar assets may continue competing with emerging markets for capital and limit the durability of foreign inflows into India.”

Stock Market Trades Higher After Flat Opening 

At around 11:13 AM, BSE's 30 share index was up 477.78 points or 0.65 per cent to 73,723.81, while Nifty50 was quoted at 22,820.95, up 127.40 points or 0.56 per cent.

Earlier in the morning, Nifty50 opened at 22,690.65, a bit down from last day's closing of Rs 22,698.85. Sensex started the session at 73,268.47, slightly higher than last close of 73,246.03.

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“Indian equities opened largely flat as investors weighed the US Federal Reserve’s decision to hold interest rates steady against uncertainty over its next policy move. The absence of a clear signal on a December rate hike has done little to ease caution, particularly as persistent geopolitical tensions in West Asia keep energy markets on edge,” said Ponmudi R, CEO of Enrich Money.  

Crude Rate Today: Crude prices eased a bit, however, it remained significantly higher, posing a continued risk for India who imports over 85 per cent of its oil need. Last seen, Brent Crude, the global oil benchmark, was trading at level of $114 per barrel.