Mumbai:India's stock market benchmark indices, Sensex and Nifty, surged to fresh record highs in early trade on Thursday, propelled by positive global trends and growing expectations of a US Federal Reserve rate cut. The market rally continued from the previous day's strong performance, supported by optimism in international markets and robust foreign fund inflows.
The 30-share BSE Sensex jumped 416.67 points, reaching an all-time high of 86,026.18 in the morning session. The previous record of 85,978.25 was set on 27 September 2024. Meanwhile, the 50-share NSE Nifty rose by 101.65 points, scaling a new peak of 26,306.95, surpassing its earlier intra-day high of 26,277 recorded on the same day last year. Among the top gainers on the Sensex were Bajaj Finance, Larsen & Toubro, Bajaj Finserv, Asian Paints, HDFC Bank, and Hindustan Unilever, which contributed significantly to the index’s rally. However, some stocks, including Eternal, UltraTech Cement, Trent, and State Bank of India, faced declines.
Asian markets also showed a positive trend, with South Korea's Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng indices all trading in the green. On Wednesday, US markets also ended on a high note, reflecting global investor optimism. Foreign Institutional Investors (FIIs) made substantial purchases, buying equities worth Rs 4,778.03 crore, while Domestic Institutional Investors (DIIs) also bought stocks valued at Rs 6,247.93 crore. This wave of inflows has provided a boost to the Indian market’s upward momentum.
Analysts attributed the market's buoyant performance to growing hopes of a rate cut by the US Federal Reserve and the potential for a peace accord between Russia and Ukraine. "The expectation of a Fed rate cut and positive geopolitical developments have significantly improved sentiment in global equity markets," said V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
Brent crude oil prices also softened, dipping 0.57% to USD 62.77 per barrel, further supporting investor confidence. The combination of positive global trends and improving risk appetite has set the stage for continued market optimism in the coming weeks.
