India’s benchmark indexes surged to record highs on Thursday, mirroring a global rally that reverberated in regional markets. This surge followed the U.S. Federal Reserve’s indication of nearing the end of its tightening cycle, fostering expectations of a potential rate cut in March 2024.
The NSE Nifty 50 index rose by 1.13%, reaching 21,163.05 points, while the S&P BSE Sensex jumped 1.22%, reaching 70,427.86 as of 11:25 a.m. IST.
Major sectors recorded gains, with the Information Technology (IT) index leading the charge with a remarkable 3% surge. Companies such as HCLTech, Tech Mahindra, LTIMindtree, Infosys, and Wipro emerged as the top Nifty 50 gainers, boasting gains ranging between 2.5% and 3.5%.
The surge in IT stocks, which derive a substantial portion of their revenue from the U.S., followed the Fed’s acknowledgment of “real progress” in curbing inflation while maintaining a pause on interest rates.
Fed Chair Jerome Powell underscored the Fed’s awareness of the risks associated with maintaining high rates for an extended period and delaying reductions, thereby reinforcing expectations of an early 2024 rate cut.
Following the Fed’s comments, Wall Street equities experienced a surge, and Asian markets also enjoyed incremental gains.
Sectors carrying significant weightage, such as banks and financials, both registered gains of approximately 1.2%.
(Inputs from Reuters)
