Sensex, Nifty Hit Record Highs After US Fed’s Rate Cut

Sensex Nifty record highs were achieved on Thursday following the US Federal Reserve’s decision to cut interest rates by 50 basis points (bps). This move sparked a strong rally in IT, banking, and financial stocks, driving both indices to all-time peaks.

By 9:41 am, the S&P BSE Sensex surged 758.7 points to 83,706.93, while the NSE Nifty50 climbed 215.40 points to 25,592.95. Broader market indices also posted significant gains, as market volatility decreased following the Fed’s rate cut announcement.

Fed Rate Cut Spurs Market Rally

The Sensex Nifty record highs were led by top sectors such as Nifty IT, Nifty Bank, and Nifty Financial Services. Stocks like NTPC, Grasim, Titan, and Axis Bank emerged as key gainers. On the downside, ONGC, BPCL, and Dr Reddy’s witnessed some losses.

Positive Outlook and Future Rate Cuts

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented that the Fed’s rate cut could provide a significant boost to global equity markets. He remarked, “The Fed’s positive inflation outlook, targeting 2%, signals optimism for the US economy.”

Vijayakumar further indicated that India could follow suit with rate cuts, potentially reducing interest rates by 25 bps each before March 2025, as CPI inflation remains below RBI’s 4% target.

Nifty’s Key Levels to Watch

Santosh Meena, Head of Research at Swastika Investmart Ltd., emphasized that Nifty’s structure will stay bullish as long as it trades above 25,300. He pointed to target levels of 25,600 and 25,921, but cautioned that a dip below 25,300 could trigger profit booking, leading to market corrections.

With these developments, the outlook for Indian markets remains positive, particularly for rate-sensitive sectors like banking.