India’s benchmark indices hovered near record highs on Friday, driven by a rally in Asian markets as investors anticipated a 50-basis-point interest rate cut by the U.S. Federal Reserve.
At the opening bell, the Nifty 50 climbed to 25,430.45, marking a gain of 41.55 points or 0.16 percent. Simultaneously, the BSE Sensex reached a staggering 83,091.55 points, up by 128.84 points or 0.16 percent.
This remarkable performance comes against the backdrop of rallying global markets, spurred by anticipated Federal Reserve rate cuts.
“The focus is totally on the Fed action and Fed speak of Sep 18th. But the Sep 12th Indian markets action is pointing to a classical flow pattern of equity markets getting inflows as the US dollar weakens on the back of Fed rate cuts. Markets will move sharply in anticipation of this. Some minor risk-off is possible early next week, in the lead up to the FOMC announcement on Sep 18th night time in India. FIIs have cut the “caution” out from our “cautious optimism” and made us ardently “optimistic” said Ajay Bagga, Banking and market expert.
Sectoral indices on the National Stock Exchange showed varied performance, with Nifty Media leading the gains, followed closely by Nifty Metal and Nifty PSU Bank.
This record-breaking performance follows Thursday’s milestone, where both Sensex and Nifty closed at all-time highs, driven by broad-based buying across sectors. The Sensex had skyrocketed by 1,439.55 points to close at 82,962.71, while the Nifty surged by 395.40 points, closing at 25,313.85 points.
(Inputs from ANI)