Mumbai, Mar 21 (IANS): Indian markets responded favourably to the positive global sentiment on Thursday, spurred by the outcome of the US FOMC (Federal Open Market Committee) meeting, which bolstered hopes for three rate cuts in FY25, said Vikram Kasat, Head-Advisory, Prabhudas Lilladher.

While the Nifty 50 ended the day at 22,011.95, up 173 points, or 0.79 per cent, the Sensex closed 540 points, or 0.75 per cent, up at 72,641.19 on Thursday.

All sectors in the domestic market were in positive territory on Thursday, with Nifty Metal and Nifty PSU Bank witnessing the most significant gains at 2.5 per cent each.

The broader market outperformed the benchmarks. The Dollar Index, which gauges the greenback against a basket of currencies, dipped below 103 after the US Fed maintained a dovish stance for the year, Kasat said.

Vinod Nair, Head of Research at Geojit Financial Services, said the domestic market is taking cues from the global market infusing optimism as the Federal Reserve signalled to remain on track for three interest rate cuts this year despite inflation staying above the long-term target.

The broader market outperformed the frontline index also taking advantage of the HSBC composite PMI data, which rose to 61.3 per cent in March as compared to 60.6 per cent in February, indicating that the economic condition is supportive, Nair said.

Short-term traders are taking advantage of the oversold territory from the recent sell-off, he added.

Shiju Koothupalakkal, Technical Analyst at Prabhudas Lilladher, said that from the low made near the 71,675 zone in the previous session, the Sensex managed to move past the important 50-EMA level of 72,200 zone as it breached the 72,500 levels intraday.

The Sensex gained 515 points as the sentiment improved along with a positive bias, so a further rise can be anticipated.

Construction, metals, PSU banks, media & entertainment, energy, consumer durables, financial services, and pharma stocks were among the major sectors that moved the index higher on Thursday.