The key equity benchmarks saw modest gains in early afternoon trading, with the Nifty hovering above the 25,400 mark. Auto stocks rebounded after declining in the previous session. Market volatility is expected due to the weekly F&O series expiry today.

As of 12:30 IST, the S&P BSE Sensex climbed 194.40 points, or 0.23%, to 83,142.63, while the Nifty 50 rose by 56.95 points, or 0.22%, to 25,434.50. Earlier in the day, both indices hit record highs, with the Sensex reaching 83,773.61 and the Nifty peaking at 25,611.95.

Broader markets underperformed compared to the leading indices, with the S&P BSE Mid-Cap index down 1.82% and the S&P BSE Small-Cap index dropping 2.25%.

Market breadth was weak, with 869 stocks advancing and 2,936 declining on the BSE, while 139 stocks remained unchanged.

Also read | Indices trade with small gains; European market opens higher

Economy Update: The US Federal Reserve implemented a major policy shift on Wednesday, cutting interest rates by 50 basis points. This marks the first rate cut in over four years, signaling a potential easing of tight monetary policies designed to control inflation. The Federal Open Market Committee (FOMC) pointed to progress in managing inflation and shifting risk dynamics as reasons for the decision. This rate reduction is expected to lower borrowing costs, potentially boosting consumer spending and business investment.

For more updates, click here.