Stock Market Today: GIFT Nifty up after Fed holds rate; China LPR, BoE eyed

Stock Market Today, March 20: Gains in the domestic stock markets would be on the back of a rally in Wall Street stocks, where the Dow Jones climbed 0.92 per cent, the S&P 500 jumped 1.08 per cent

Stock Market Today, Thursday, March 20, 2025: Stock markets today will react to the US Federal Reserve’s interest rate decision, announced overnight, where Chairman Jerome Powell kept interest rates unchanged but projected at least 50-basis point reduction by the end of 2025.

 

Stock Market Today Prediction, March 20:

  India stock market today may open higher as investors may be relieved after the US Fed said it will cut rates twice in 2025 owing to a slower economic growth in the US.

 

At 7:05 AM, GIFT Nifty futures were up 92 points at 23,065.

 

Gains in the domestic stock markets would be on the back of a rally in Wall Street stocks, where the Dow Jones Industrial Average climbed 0.92 per cent, the S&P 500 jumped 1.08 per cent, and the Nasdaq Composite advanced 1.41 per cent.

 

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Asia, however, was mixed this morning with Japan’s Nikkei down 0.25 per cent, South Korea’s Kospi up 0.49 per cent, and Australia’s ASX200 up 0.87 per cent.  ALSO READ: Stock Market LIVE Updates: GIFT Nifty signals gap-up open for India markets; Fed holds rates steady

 

The Federal Open Market Committee (FOMC), on Wednesday, kept its key borrowing rate targeted in a range between 4.25 per cent-4.5 per cent, unchanged since December, even as it faced pressing concerns over the impact tariffs will have on a slowing economy. The decision was in-line with market expectations.

 

Amid the uncertain impact of US President Donald Trump’s tariff plans, FOMC officials said they still see another half percentage point of rate cuts through 2025, in two increments of a quarter percentage point each.

 

At his post policy press conference, Chairman Jerome Powell said that there had been a "moderation in consumer spending" and that tariffs may put upward pressure on prices ahead. Given this, the Committee now projects the US economy growing at 1.7 per cent this year, down 0.4 percentage point from the last projection in December. On inflation, core prices are expected to grow at a 2.8 per cent annual pace, up 0.3 percentage point from the previous estimate.

 

That said, with the US Fed decision behind the market, focus will shift to China’s monthly loan prime rate decision, Bank of England’s interest rate decision, and the US’ weekly jobless claims data, all due today. 

China kept its key lending rates unchanged on Thursday. The People's Bank of China held the 1-year loan prime rate at 3.1 per cent and the 5-year LPR at 3.6 per cent, where they have been since a quarter-percentage-point cut in October.

 

Back home, FII activity, Nifty weekly F&O expiry, and stock-specific trades will sway the markets today. 

 

Stock Market News Today:

Closing higher for a third straight day, the BSE Sensex index ended at 75,449.05, up 147.79 points or 0.20 per cent, on Wednesday. The NSE Nifty50, too, ended at 22,907.60, up 73.30 points or 0.32 per cent.

 

The FIIs, however, remained net sellers of Indian equities again, after a one-day hiatus, as they sold shares worth Rs 1 ,096.50 crore on March 19, 2025. DIIs, on the flipside, bought Indian shares worth Rs 2,140.76 crore.

 

Meanwhile, FPI ownership of Indian equities has been steadily declining from its peak in 2015. Their stake stood at 19.1 per cent at the end of December 2024, near the lowest since June 2010. READ MORE

 

That apart, the recent market correction has increased the number of "investable value" stocks but deep bargains are hard to find, according to a report by ICICI Securities. READ MORE

 

On the economic front, escalating trade war, amid Trump’s decision to impose tariffs, could adversely impact global growth and fuel inflation, said the Reserve Bank of India’s (RBI’s) monthly bulletin. READ MORE

 

IPOs Today

The initial public offering of Grand Continent Hotel (SME) will open for subscription today.

 

That apart, the basis of allotment of Paradeep Parivahan IPO and Divine Hira Jewellers IPO, both SME, will be finalised today.

 

Stock Market Outlook: How to trade, Nifty, Sensex today?

 

Bajaj Broking Research:

The Nifty index, on the daily chart, has formed a small bull candle with shadows in either direction, signaling consolidation with a positive bias. The index is seen heading towards 23,000-23,200 levels in the coming sessions with immediate supports placed at 22,500-22,600 levels.

 

Shrikant Chouhan, Head Equity Research, Kotak Securities:

We believe the short-term texture of the market is still positive, but due to temporary overbought conditions, we could see a rangebound activity in the near-future. For day traders, the key support zones for Nifty/Sensex are 22,800-22,720/75,200-75,000, while 23,000-23,100/78,800-76,000 could act as crucial resistance areas for the bulls. A fall below 22,720/75,000 would make the uptrend vulnerable.

 

Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities:

A small positive candle was formed on the daily chart which indicates a breather type market movement. The Nifty is currently nearing a crucial overhead resistance of around 23,000-23,100 levels. This is going to be an important hurdle for the market and there is a possibility of some more consolidation or minor dip from the highs in the next 1-2 sessions. Immediate support is placed around 22,800-22,750 levels.