Mumbai, Sep 18 : The Indian benchmark indices opened higher on Thursday, on the back of positive global cues as the US Federal Reserve eased rates by 25 bps.

As of 9.24 am, the Sensex was up 347 points or 0.42 per cent at 83,041, and the Nifty was up 89 points or 0.35 per cent at 25,419.

The Federal Reserve resumed interest rates cut cycle by reducing rates by 25 basis points to a target range of 4.0-4.25 per cent, citing shifting risk dynamics in the economy. Fed officials projected two additional rate cuts this year, forecasting rates to reach 3.50-3.75 per cent by the end of 2025.

The rate cuts were anticipated as concerns intensified over weak labour market data and high inflation.

The broad cap indices Nifty Midcap 100 inched up by 0.08 per cent, and the Nifty Small cap 100 jumped 0.68 per cent.

Tech Mahindra (1.10 per cent), ICICI Bank, TCS, Bajaj Finserv, Trent were among major gainers on the Nifty, while losers were Hindalco, Bajaj Finance, Apollo Hospitals, SBI and SBI Life Insurance.

Among sectoral indices, Nifty IT, the top gainer, jumped 1.5 per cent. Nifty Realty (up 0.66 per cent) and Nifty Pharma (up 0.37 per cent) were the other notable gainers. Except metal, all other sectoral indices were trading in the green.

The Nifty 50 held firmly above the 25,300 mark in the previous session, reinforcing psychological strength and signaling investor comfort at higher levels.

Analysts said that the index now shows potential upside momentum, with resistance expected around the 25,400'25,500 zone. The support remains intact at 25,000'24,900 zones.

"Since the labour market is cooling and the GDP growth projection for 2025 is only 1.6 per cent, perhaps two more cuts are possible this year," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

The ongoing rally in the Indian market is driven by expectations of earnings revival and a positive outcome from the India-US trade negotiations, he added.

Asia-Pacific markets were largely in the green zone after US President Donald Trump said that the US-China trade negotiations are progressing well. Major US indices declined modestly overnight as the Nasdaq dipped 0.33 per cent, the S&P 500 lost 0.10 per cent, and the Dow inched up 0.57 per cent.

Most of the Asian markets made strong gains during the morning session. While China's Shanghai index advanced 0.41 per cent, and Shenzhen jumped 1.09 per cent, Japan's Nikkei edged up 1.09 per cent, while Hong Kong's Hang Seng Index dipped 0.08 per cent. South Korea's Kospi added 1 per cent.

On Wednesday, foreign institutional investors (FIIs) net sold equities worth Rs 1,124 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 2,293 crore.

/IANS