Sensex, Nifty hit record highs amid Fed rate cut hopes, strong foreign inflows

Indian equity markets surged to fresh record levels in early trade on Thursday, buoyed by optimistic global cues, expectations of a US Federal Reserve rate cut, and continued foreign fund inflows.

The 30-share BSE Sensex jumped 416.67 points to reach a new lifetime high of 86,026.18, surpassing its previous peak of 85,978.25 recorded on 27 September 2024. The NSE Nifty 50 also rallied 101.65 points to touch an all-time high of 26,306.95, above its earlier intra-day record of 26,277 set on the same date.

Among Sensex constituents, Bajaj Finance, Larsen & Toubro, Bajaj Finserv, Asian Paints, HDFC Bank and Hindustan Unilever led the gains, while Eternal, UltraTech Cement, Trent and State Bank of India lagged.

Positive momentum was also visible across Asian markets, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng trading higher. US markets had ended on a strong note on Wednesday, further supporting sentiment.

Foreign Institutional Investors (FIIs) were net buyers of equities worth Rs 4,778.03 crore on Wednesday, while Domestic Institutional Investors (DIIs) added stocks worth Rs 6,247.93 crore, according to exchange data.

“Expectation of a rate cut by the Fed and a possible Russia-Ukraine peace accord have improved sentiment for equity markets globally,” said V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

Ponmudi R, CEO of Enrich Money, highlighted the influence of global markets, noting, “Global equity markets have extended their gains, buoyed by growing expectations of interest-rate cuts by the US Federal Reserve. Major US indices, including the S&P 500, Dow Jones, and Nasdaq, posted solid advances as softer Treasury yields and renewed policy optimism strengthened risk appetite. This upbeat sentiment has carried into today’s global trade, with Asian markets opening higher.”

Brent crude, the global oil benchmark, eased 0.57 per cent to USD 62.77 per barrel.

In Wednesday’s trade, the Sensex had surged 1,022.50 points, or 1.21 per cent, to settle at 85,609.51, while the Nifty gained 320.50 points, or 1.24 per cent, to close at 26,205.30.

The strong start on Thursday reflects both robust domestic investor interest and positive global cues, signalling continued bullish sentiment for Indian equities.

With PTI inputs