Nifty hits 25,900 for first time, Sensex touches new high
Sensex and Nifty, have reached new all-time highs at the start of trading today. The surge follows a significant rate cut by the US Federal Reserve. Sensex rose by over 290 points to scale a new peak of 84,881, while Nifty crossed the 25,900 mark for the first time ever, touching a new high of 25,925. Pharmaceutical stocks gained 1%, auto stocks rose by 0.9%, and financial services, fast-moving consumer goods, real estate, and consumer durable stocks also opened higher.
Indian markets continue upward trajectory from last week
The current market momentum continues from last week when both BSE Sensex and Nifty 50 ended 1% higher each. On Friday, the Sensex gained 1,360 points or 1.63% to close at a then-record high of 84,544.31. Simultaneously, Nifty 50 also reached a new peak of 25,849.25 before concluding with gains of 375 points or an increase of nearly 1.5%, at an impressive figure of 25,791.
Global market trends influence Indian indices
Markets in the Asia-Pacific region displayed mixed reactions today as they processed interest rate decisions from China and Japan. While Japan's market was closed due to a public holiday, Australia's S&P/ASX 200 opened 0.43% higher. In contrast, South Korea's Kospi fell by 0.15% and Hong Kong's Hang Seng index futures were lower than their previous close at 18,199. Meanwhile, Wall Street ended flat on Friday with all three major US stock indices concluding the week near record-highs reached last Thursday.
US Federal Reserve's rate cut boosts global markets
The US Federal Reserve's decision to slash rates by 50 bps and signal further cuts has invigorated global markets. This move has sparked strong buying in major markets across the US, Europe, and Asia. The initiation of this rate-reduction cycle has also increased investors' risk tolerance. Fears of an impending US recession have slightly subsided following lower-than-anticipated jobless claims for the week ending September 14.
