Feedback | Monday, October 07, 2024

Sensex, Nifty surge as global markets rally after Fed rate cut

India’s benchmark indices surged on Friday, tracking a global market rally fueled by the U.S. Federal Reserve’s decision to cut interest rates by 50 basis points.

The Nifty 50 gained 110.15 points, or 0.43%, to open at 25,525.95, while the Sensex rose by 418.24 points, or 0.50%, to 83,603.04.

Market experts attribute the rally to sustained support from domestic investors, which has helped offset selling pressure from foreign institutional investors (FIIs).

“US markets rebounded strongly, with the S&P 500 touching its 39th all-time high. Asian markets are largely positive as well. India saw a surprising negative figure for FII flows on Wednesday. Many foreign brokerages are highlighting India’s high valuations as a concern, with the MSCI India Index trading at 24 times forward PE,” said Ajay Bagga, Banking and Market Expert.

““Domestic flows continue to be strong but if FII selling continues, it will make it tough for the Indian markets to rally sustainably,” Bagga added.

Among sectoral indices on the NSE, Nifty Metal led gains in the early session with a 0.96% rise. Nifty Bank, Nifty FMCG, and Nifty Auto also posted gains.

Top gainers in early trade included Tata Steel, JSW Steel, and Mahindra & Mahindra, while Tata Motors, LTIM, and Dr. Reddy’s were among the biggest decliners.

Asian markets mirrored the rally ignited by the Fed’s rate cut, with Japan’s Nikkei 225 surging over 2%, Hong Kong’s Hang Seng gaining 1.65%, and South Korea’s KOSPI up 0.78%.

In the U.S., stocks surged on Thursday, with the Dow Jones Industrial Average and S&P 500 reaching new all-time highs.

(With ANI input)

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Last Updated: 7th Oct 2024