Markets Rally Due To Fed Rate Cut Hopes, Sensex Soars 600 Points, Nifty Over 25,300
Notably, the markets witnessed a strong start to trading today morning when the Sensex climbed more than 350 points and the Nifty opened over 25,200.
Stock markets managed to not only recover their losses but settled trading today with a strong rally. The BSE Sensex closed the session nearly 600 points higher and crossed 82,600, while the NSE Nifty50 soared over 100 points and surpassed 25,300.
The top gainers on Wednesday included stocks such as Bajaj Finance, Bajaj Finserv, Trent, Asian Paint and Eternal, while the laggards included Kotak Bank, Maruti, Axis Bank, Tech Mahindra and Tata Motors.
In the broader markets, all the indices painted green despite a high volatility of over 5 per cent and the Nifty Midcap 100 index gained by 1.11 per cent. Among the sectoral indices the Nifty Realty saw an increase of 3.04 per cent.
The Indian indices followed the sentiment prevalent across their Asian counterparts on Wednesday. This surge could be attributed to the anticipation surrounding a rate cut from the US Federal Reserve.
Notably, the markets witnessed a strong start to trading today morning when the Sensex climbed more than 350 points and the Nifty opened over 25,200. The Gift Nifty indicated a marginal rise of 0.09 per cent around 8:18 AM.
Fed Rate Cut Ahead
Additionally, the US markets closed on a mixed note on Tuesday as investor sentiment remained cautious following remarks by Federal Reserve Chair Jerome Powell.
Powell cautioned that the sharp slowdown in hiring is posing an increasing risk to the US economy, signalling the potential for two additional rate cuts later this year, according to Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Investor sentiment strengthened after US Federal Reserve Chair Jerome Powell stated that while the labour market remains weak, the economy is showing signs of stability. He added that the inflation outlook remains unchanged from September, when the Fed last implemented a 25-basis-point rate cut.
Oil Markets And Foreign Flows
Meanwhile, global oil benchmark Brent crude slipped 0.19 per cent to $62.27 per barrel, reflecting subdued demand expectations amid economic concerns.
On the domestic front, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,508.53 crore on Tuesday, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 3,661.13 crore, as per data from the stock exchanges.
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