Mumbai (Maharashtra) [India], March 18 (ANI): The Indian stock market opened on a strong note on Tuesday, driven by positive global cues and investor confidence in the US Federal Reserve maintaining its current interest rates.

The Sensex surged 388.45 points to open at 74,558.41, while the Nifty climbed 153.50 points to start at 22,662.25.

Among Nifty companies, 43 stocks advanced while seven declined in early trade. The top gainers included Hindalco, ICICI Bank, Axis Bank, Shriram Finance, and M&M, while HCL Tech, TCS, Tech Mahindra, ONGC, and Sun Pharma were the top losers.

Market sentiment was buoyed by expectations that the Federal Open Market Committee (FOMC) will maintain its current interest rate stance.

Ajay Bagga, a banking and market expert, commented, 'In a Central Bank policy heavy week, where 10 central banks are announcing interest rate decisions, risk assets will be closely watching the US Fed. A 99% probability is baked into Fed futures for a 'hold' by the FOMC this week'

He added, 'The Bank of Japan and Bank of England are also expected to keep their policy on hold for now. US markets rallied for a second day on the back of stronger-than-expected retail sales numbers from the US. Asian markets are following through with most major Asian markets up this morning. Indian markets saw a steep FPI cash sales number but managed to end Monday in the green on the back of strong DII numbers.'

Global markets remained positive, with US markets rallying for a second consecutive day, supported by stronger-than-expected retail sales data. Asian markets followed suit, with most major indices trading higher on Tuesday morning.

Despite foreign portfolio investors (FPI) recording significant cash sales, Indian markets managed to close in the green on Monday, driven by strong domestic institutional investor (DII) activity. However, Bagga warned of potential volatility post the FOMC meeting.

'We are expecting some selloff on Wednesday post the FOMC meeting as the Fed futures are showing that the markets are discounting as many as three rate cuts in 2025. Any hawkish Fed speak on this front could lead to a small selloff in the markets on Wednesday in the US,' he added.

Investors will closely monitor the Federal Reserve's policy decision and subsequent commentary, which could influence market movements in the coming days. (ANI)