us-fed-rate-cut-expectations-drive-indian-markets-up

US fed rate cut expectations drive Indian markets up

Indian benchmarks BSE Sensex and NSE Nifty started the week on a positive note. The Sensex rose by 612 points, or 0.75 per cent, to close at 81,698.11 on Monday. Similarly, the Nifty50 increased by 187.46 points, or 0.76 per cent, ending at 25,010.60.

News Arena Network - Mumbai - UPDATED: August 26, 2024, 04:12 PM - 2 min read

US fed rate cut expectations drive Indian markets up

Monday ended in favour of the bulls as 33 out of 50 listed stocks on Nifty50 ended higher with gains led by Hindalco, HCL Tech, NTPC, and ONGC

Benchmark indices Sensex and Nifty surged nearly 1 per cent on Monday, buoyed by renewed optimism that the US Federal Reserve might soon begin cutting interest rates.

The 30-share BSE Sensex jumped by 611.90 points, or 0.75 per cent, to close at 81,698.11. During the day, it reached a high of 81,824.27, up 738.06 points, or 0.91 per cent.

The NSE Nifty rose 187.45 points, or 0.76 per cent, to finish at 25,010.60.

Among the top gainers in the Sensex, HCL Technologies, NTPC, Bajaj Finserv, Tech Mahindra, JSW Steel, Titan, Mahindra & Mahindra, Tata Steel, Larsen & Toubro, and Tata Consultancy Services saw significant increases. Conversely, Kotak Mahindra Bank, IndusInd Bank, Maruti, and Hindustan Unilever lagged.

Traders cited foreign fund inflows and gains in key stocks, such as HDFC Bank and Reliance Industries, as significant drivers of the market rally.

On Friday, US Federal Reserve Chair Jerome Powell indicated that it might be time to lower the main interest rate, which has been at a two-decade high. "The time has come for policy to adjust," Powell said. "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks."

In Asian markets, Shanghai and Hong Kong ended in positive territory, while Seoul and Tokyo closed lower. European markets were mostly lower, and US markets showed significant gains on Friday.

V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that Powell’s signal of a potential rate-cutting cycle would likely bolster the ongoing global stock market rally.

Foreign Institutional Investors (FIIs) purchased equities worth ₹1,944.48 crore on Friday, according to exchange data.

Global oil benchmark Brent crude increased by 1.08 per cent to USD 79.87 per barrel.

The BSE Sensex ended the day 33.02 points, or 0.04 per cent, higher at 81,086.21, marking its fourth consecutive session of gains. The NSE Nifty rose by 11.65 points, or 0.05 per cent, to close at 24,823.15, recording its seventh straight session of increases.