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Indian markets surged to an all-time high on Thursday, buoyed by a rally in information technology stocks, after the U.S. Federal Reserve initiated its monetary easing cycle with a significant 50-basis-point rate cut.

The Nifty 50 index rose 0.76% to 25,570.6 points, while the S&P BSE Sensex climbed 0.82% to 83,647.96 as of 9:22 a.m. IST.

"The Fed's bold and unexpected rate cut is a positive signal for equity markets," said Dhawal Ghanshyam Dhanani, fund manager at SAMCO Mutual Fund.

The rate reduction is expected to benefit Indian IT firms, which generate a substantial portion of their revenue from the U.S. market, according to analysts. The Nifty IT index jumped 1.6%, making it the top-performing sector of the day.

All 13 major sectors posted gains, with small-cap and mid-cap indices rising by approximately 0.6%.

Other Asian markets followed suit, as the MSCI Asia ex-Japan index gained 0.9%.