19 September,2024 10:05 AM IST | Mumbai | mid-day online correspondent
Representative Image/ Pixabay
In early trading on Thursday, the major equity indices, Sensex and Nifty, surged to all-time highs in response to the US Federal Reserve's decision to lower its benchmark interest rate for the first time in more than four years.
At 83,684.18, the 30-share BSE Sensex reached an all-time high, rising 735.95 points. Comparably, the NSE Nifty experienced a gain of 209.55 points, culminating in a new high of 25,587.10, reported PTI.
"The big Fed rate cut by 50 bps has the potential to take equity markets into a consolidation phase with an upward bias. The rate cuts by the Fed will pave the way for rate cuts in India, too," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, told PTI.
According to the report, NTPC, Axis Bank, Tata Motors, Tata Consultancy Services, Bharti Airtel, Tech Mahindra, Infosys, and HDFC Bank were the top gainers among the 30 Sensex companies. The only company to report a decline was Bajaj Finserv.
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Asia's markets experienced increases in Tokyo, Shanghai, and Hong Kong, and minor declines in Seoul. On Wednesday, the US markets ended the day lower, the report added.
Based on information from exchanges, Foreign Institutional Investors (FIIs) bought stocks on Wednesday for a total of Rs 1,153.69 crore.
"The 50 bps rate cut is a bold stance by the US Fed to revitalise their subdued economy, which will in turn open the door for other global central banks, including RBI to kick-start the softer interest rate regime," said Wallfort Financial Services Ltd. founder Vijay Bharadia.
In the meantime, the benchmark for global oil prices, Brent crude, fell by 0.07 per cent to USD 73.60 per barrel. The NSE Nifty declined 41 points to 25,377.55 on Wednesday, while the BSE Sensex fell 131.43 points to close at 82,948.23, stated the PTI report.
In early trade on Thursday, the Indian rupee gained 6 paise to 83.70 against the US dollar, helped by optimistic market sentiment in the wake of the US Federal Reserve's interest rate cut. Forex dealers attributed the rupee's advances to lower crude oil prices, an increase in domestic equity markets, and foreign investment inflows. Nonetheless, additional Indian rupee gains were constrained by the higher US dollar.
The rupee started trading at 83.70 in the interbank foreign exchange market and briefly rose to 83.69 before closing at 83.70, up 6 paise from its previous closing level. The rupee strengthened by 10 paise on Tuesday, closing at 83.76 against the US dollar. Because Wednesday was a public holiday in Maharashtra, the FX market was closed.
With PTI inputs
