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In response to a global market rally and the US Federal Reserve’s decision to keep its key interest rate unchanged, benchmark equity indices, Sensex and Nifty, soared to all-time highs on Thursday.
The BSE Sensex, comprising 30 shares, surged 796.64 points to reach a record peak of 70,381.24 in early trade. Similarly, the Nifty experienced a robust rally, climbing 222.1 points to achieve its highest-ever level of 21,148.45.
Major gainers among the Sensex firms included Tech Mahindra, HCL Technologies, Wipro, Infosys, Bajaj Finance, Tata Consultancy Services, Bajaj Finserv, and ICICI Bank. Conversely, Power Grid, Nestle, Asian Paints, and Hindustan Unilever lagged behind.
In the Asian markets, Seoul, Shanghai, and Hong Kong demonstrated positive trends, while Tokyo quoted lower. The positive momentum was further supported by significant gains in the US markets on Wednesday.
The Federal Reserve’s decision to maintain the key interest rate for the third consecutive time, coupled with signals of anticipated quarter-point cuts in the benchmark interest rate next year, contributed to the positive market sentiment. This dovish stance from the Fed has set the stage for a potential Santa Claus rally and could even trigger a pre-election rally, pushing the markets to new highs, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Foreign Institutional Investors (FIIs) continued to be buyers, acquiring equities worth Rs 4,710.86 crore on Wednesday. The global oil benchmark, Brent crude, also experienced a 0.30% increase, reaching $74.48 a barrel.
On Wednesday, the BSE benchmark gained 33.57 points (0.05%) to settle at 69,584.60, while the Nifty saw an increase of 19.95 points (0.10%) to reach 20,926.35.
