BSE Sensex & Nifty50 on Thursday gave a big cheer to the dovish commentary by the US Federal Reserve. BSE Sensex rose over 900 points to touch all-time highs as most sectors joined the market rally. At 10:56 AM, Sensex was trading at 70,402, up over 800 points or 1.18%. Nifty50 was at 21,153, up 226 points or 1.08%. This is the third time this week that the BSE Sensex has crossed the 70,000 mark.
In the Sensex group, prominent gainers included Tech Mahindra, HCL Technologies, Wipro, Infosys, Bajaj Finance, Tata Consultancy Services, Bajaj Finserv, and ICICI Bank.Meanwhile, Power Grid, Nestle, Asian Paints, and Hindustan Unilever were among those that experienced a decline.
According to ET, the market capitalization of all listed companies on BSE rose by Rs 3 lakh crore, reaching Rs 354.19 lakh crore.
Why Sensex & Nifty50 are rallying & will the rally continue?
The US Federal Reserve decided to keep interest rates unchanged for the third consecutive meeting and indicated a series of cuts for the next year. Officials unanimously agreed to maintain the target range for the benchmark federal funds rate at 5.25% to 5.5%, the highest since 2001. The projections showed no further interest rate hikes, a first since March 2021.
US markets also saw positive movement, with the Dow closing at a record high above 37,000 points. The S&P 500 and the Nasdaq composite both rose by 1.4%. Wall Street has been experiencing an upward trend since October, primarily due to expectations of interest rate cuts.
Experts predict a Santa Claus rally in the coming days, following the dovish message from the Federal Reserve. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services is of the view that the current market rally could potentially lead to new market highs and a pre-election rally. The Federal Reserve’s recent announcement suggests the end of the tightening cycle, potentially paving the way for three rate cuts in 2024, contrasting with the market’s anticipation of four cuts. The Dow’s remarkable surge is poised to propel numerous indices to unprecedented highs, he said.
Deven Mehata, Research Analyst at Choice Broking says that the Nifty may find support at 20,900, followed by 20,850 and 20,800, with immediate resistance at 21,020, followed by 21,100 and 21,150.
Umeshkumar Mehta, Chief Investment Officer at Samco Mutual Fund told Reuters that he anticipates additional gains for Indian shares driven by robust economic growth from government capital expenditure, expectations of political stability in 2024, a favorable global rate outlook, and conducive liquidity conditions.
In the Sensex group, prominent gainers included Tech Mahindra, HCL Technologies, Wipro, Infosys, Bajaj Finance, Tata Consultancy Services, Bajaj Finserv, and ICICI Bank.Meanwhile, Power Grid, Nestle, Asian Paints, and Hindustan Unilever were among those that experienced a decline.
According to ET, the market capitalization of all listed companies on BSE rose by Rs 3 lakh crore, reaching Rs 354.19 lakh crore.
Why Sensex & Nifty50 are rallying & will the rally continue?
The US Federal Reserve decided to keep interest rates unchanged for the third consecutive meeting and indicated a series of cuts for the next year. Officials unanimously agreed to maintain the target range for the benchmark federal funds rate at 5.25% to 5.5%, the highest since 2001. The projections showed no further interest rate hikes, a first since March 2021.
US markets also saw positive movement, with the Dow closing at a record high above 37,000 points. The S&P 500 and the Nasdaq composite both rose by 1.4%. Wall Street has been experiencing an upward trend since October, primarily due to expectations of interest rate cuts.
Experts predict a Santa Claus rally in the coming days, following the dovish message from the Federal Reserve. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services is of the view that the current market rally could potentially lead to new market highs and a pre-election rally. The Federal Reserve’s recent announcement suggests the end of the tightening cycle, potentially paving the way for three rate cuts in 2024, contrasting with the market’s anticipation of four cuts. The Dow’s remarkable surge is poised to propel numerous indices to unprecedented highs, he said.
Deven Mehata, Research Analyst at Choice Broking says that the Nifty may find support at 20,900, followed by 20,850 and 20,800, with immediate resistance at 21,020, followed by 21,100 and 21,150.
Umeshkumar Mehta, Chief Investment Officer at Samco Mutual Fund told Reuters that he anticipates additional gains for Indian shares driven by robust economic growth from government capital expenditure, expectations of political stability in 2024, a favorable global rate outlook, and conducive liquidity conditions.