The benchmark indices ended higher on Thursday, extending gains to close at their highest levels since early July, led by strength in IT and pharma stocks following the US Federal Reserve’s 25-basis-point rate cut.

The Nifty 50 rose 93 points to settle at 25,424, holding firmly above the 25,400 level, while the Sensex added 320 points to close at 83,014. The Nifty Bank gained 234 points to finish at 55,727, and the broader Nifty Midcap index advanced 225 points to 59,073, moving largely in line with the benchmarks.

“Nifty remained volatile after a gap-up start, driven by a dovish Fed announcement. The short-term trend is likely to stay positive as the index is comfortably trading above its critical moving average. The daily RSI is in a bullish crossover and rising above the previous swing high, indicating strengthening momentum. In the near term, support is placed at 25,300 and 25,150. On the other hand, crucial resistance is seen at 25,500. A decisive move above this level could trigger a rally towards 26,000. Overall, a buy-on-dips strategy remains favorable in the current market scenario,” Rupak De, Senior Technical Analyst at LKP Securities, said.

Pharma stocks were among the top contributors, with Sun Pharmaceutical rising 2% and Glenmark Pharma gaining more than 2% after reporting positive results for a cancer drug. Biocon jumped 4% on drug approval news, though Cohance Lifesciences slid 6% following observations from the U.S. FDA.

Insurance counters traded with healthy volumes, with HDFC Life advancing over 2%, while IT stocks also contributed to the rally, with the Nifty IT index up 1% after the Fed’s policy decision boosted sentiment for the rate-sensitive sector.

In the broader market, Poonawalla Fincorp surged 13% after its promoter infused fresh capital into the company. HFCL gained 3% after being removed from the F&O ban list.

Among laggards, Page Industries slipped over 2% as HSBC maintained a “reduce” rating on the stock. Cohance’s losses weighed on the pharma pack, though gains elsewhere helped the index close positive.

IRM Energy extended its winning streak, soaring 34% over the past four sessions, while Urban Company added 2% following strong gains a day earlier.

Market breadth was neutral, with the advance-decline ratio at 1:1, suggesting no clear dominance by bulls or bears.