Sensex and Nifty Hit Record Highs After US Federal Reserve’s Rate Cut

BHUBANESWAR: India’s stock markets soared to new record highs on Thursday, driven by a significant interest rate cut by the US Federal Reserve. This is the first time in more than four years that the Fed has slashed its benchmark interest rate, which boosted investor sentiment globally.

In early trading, the BSE Sensex surged by 735.95 points, hitting an all-time high of 83,684.18. Meanwhile, the NSE Nifty rose by 209.55 points to reach a fresh peak of 25,587.10.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked, “The Fed’s bold 50 basis point rate cut could push equity markets into a consolidation phase with an upward trend. This could also pave the way for rate cuts in India.”

Leading the gains on the Sensex were major firms like NTPC, Axis Bank, Tata Motors, TCS, Bharti Airtel, Tech Mahindra, Infosys, and HDFC Bank. However, Bajaj Finserv stood out as the sole laggard in the pack.

Elsewhere in Asia, stock markets in Tokyo, Shanghai, and Hong Kong rallied, while Seoul saw minor losses. In the US, markets had ended lower on Wednesday.

Foreign investors also contributed to the rally, with Foreign Institutional Investors (FIIs) buying equities worth ₹1,153.69 crore on Wednesday.

According to Vijay Bharadia, Founder of Wallfort Financial Services Ltd, “The Fed’s 50 bps rate cut is a bold move aimed at revitalizing their economy, and this may encourage other global central banks, including India’s RBI, to consider rate cuts.”

In the commodities market, Brent crude oil prices dipped slightly, trading at $73.60 per barrel.

This surge comes after both Sensex and Nifty had witnessed a slight dip on Wednesday. The Sensex had closed 131.43 points lower at 82,948.23, while the Nifty had dropped by 41 points to close at 25,377.55.

As global markets respond to the Fed’s decision, analysts expect this momentum to continue, with potential interest rate cuts in India further fueling growth.

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