Mumbai: BSE Sensex surged 388 points to surpass 82,000 for the first time, while Nifty rose by 108 points to reach the all-time high of 25,000 in morning trading on Thursday following the US Federal Reserve's hint at a rate reduction by September.
In early trading, the 30-share BSE Sensex surged 388.15 points, or 0.47 pc, reaching a record intra-day peak of 82,129.49. The Nifty on NSE reached a milestone by surpassing the 25,000 mark, increasing by 127.15 points, or 0.50 pc , to 25,078.30 for the first time ever. Maruti saw a 2.93 per cent increase in its stock among Sensex shares after impressive June quarter results. Adani Ports, Power Grid, JSW Steel, and Tata Steel also experienced significant increases. The index reached record high levels due to gains in major companies such as HDFC Bank, Reliance Industries, and ICICI Bank. However, M&M, Sun Pharma, ITC, Infosys and TCS, were part of the losers, limiting the index's positive movements.
The indication from the Fed chief about a potential rate decrease in September is advantageous for worldwide stock markets. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that a major boost for bulls is the declaration that the US economy is returning to normalcy.
US Federal Reserve Chair Jerome Powell suggested a rate reduction by September, pointing out progress in bringing down inflation to the 2 per cent goal. This indicates that the Fed is edging closer to lowering the key interest rate for the first time in four years. On Thursday, Tokyo, Shanghai, and Hong Kong were trading down in Asian markets, while Seoul was trading up. According to exchange data, on Wednesday, foreign institutional investors sold shares worth Rs 3,462.36 crore in the capital markets.
FIRST Business Portal addressing the potential of business capability of North East Region.
