Sensex closes at record high for third day on continued optimism over Fed rate cut

Rallying for the third day running, the 30-share BSE Sensex jumped 384.30 points, or 0.45%, to settle at an all-time high of 84,928.61

Benchmark BSE Sensex jumped 384 points to close at a new all-time high on Monday (September 23, 2024), driven by gains in energy, select banking and auto shares amid continued optimism over the US Fed rate cut and positive Asian markets.

Rallying for the third day running, the 30-share BSE Sensex jumped 384.30 points, or 0.45%, to settle at an all-time high of 84,928.61. During the day, it soared 436.22 points, or 0.51%, to hit a fresh lifetime intra-day peak of 84,980.53.

The NSE Nifty rose 148.10 points, or 0.57%, to close at a record peak of 25,939.05. During the day, it zoomed 165.05 points, or 0.63%, to reach a new intra-day all-time high of 25,956.

"The euphoria from the FED rate cut continued to lift the domestic market. The benign input costs and an expectation of a change in stance by the RBI amid cuts by global banks will provide tailwinds to valuation. Though there is moderation in India PMI data, investors are anticipating that the wave of liquidity from FII may provide stability in the sentiment," Vinod Nair, Head of Research, Geojit Financial Services said From the 30 Sensex firms, Mahindra & Mahindra was the biggest gainer, rising by 3.29 per cent. State Bank of India rose by 2.55 per cent, Bharti Airtel by 2.25 per cent and Kotak Bank by 1.71 per cent.

Gains HDFC Bank, Reliance Industries and Hindustan Unilever helped the index hit all-time high. UltraTech Cement, Adani Ports, and Tata Steel were also among the gainers.

ICICI Bank, on the other hand, dropped the most by 1.25%, capping Sensex gains. IndusInd Bank, Asian Paints, Tech Mahindra, Infosys, HCL Technologies, Tata Consultancy Services, and Larsen & Toubro were among the laggards.

"The US Federal Reserve's decision to cut rates by 50 basis points signals a shift in global monetary policy, and its ripple effects are felt across global markets, including India," MarketsMojo Group CEO Amit Golia said.

The BSE midcap and smallcap indices climbed 0.73% each.

Among indices, oil & gas jumped 2.23%, realty by 2.07%, telecommunication by 1.93%, energy by 1.80%, auto by 1.46%, consumer durables by 1.39%, consumer discretionary by 1.22% and utilities by 0.92%.

BSE IT emerged as the only loser.

"The prevailing optimism in global markets is driving the trend, and this is likely to continue in the absence of significant domestic triggers," Ajit Mishra – SVP, Research, Religare Broking Ltd said.

A total of 2,382 stocks advanced while 1,731 declined and 120 remained unchanged on the BSE.

In Asian markets, Seoul and Shanghai settled higher while Hong Kong ended lower. Markets in Japan were closed for a holiday.

European markets were trading mixed. The US markets ended on a mixed note on Friday.

Global oil benchmark Brent crude climbed 0.09% to $74.55 a barrel.

The BSE benchmark jumped 1,359.51 points, or 1.63%, to settle at an all-time high of 84,544.31 on Friday. During the day, it soared 1,509.66 points, or 1.81%, to hit the momentous intra-day peak of 84,694.46.

The NSE Nifty also surged 375.15 points, or 1.48%, to close at a record 25,790.95 level. During the day, the gauge zoomed 433.45 points, or 1.70%, to reach an all-time intra-day peak of 25,849.25.

Three days of market rally adds ₹8.30 lakh cr to investors’ wealth

Investors’ wealth climbed ₹8.30 lakh crore in three days of record-breaking market rally amid continued optimism over the US Fed rate cut.

Rallying for the third day running, the 30-share BSE Sensex jumped 384.30 points or 0.45% to settle at an all-time high of 84,928.61. During the day, it soared 436.22 points or 0.51% to hit a fresh lifetime intra-day peak of 84,980.53.

In three days, the benchmark has jumped 1,980.38 points or 2.38%.

The market capitalisation of BSE-listed firms surged ₹8,30,975.85 crore to ₹4,76,03,923.17 crore ($5.70 trillion) in three days.

“Investors extended their buying support for the third straight session as benchmark indices hit fresh highs amid gains in telecom, banking, realty and oil & gas shares,” Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said.

From the 30 Sensex firms, Mahindra & Mahindra, State Bank of India, Bharti Airtel, Kotak Mahindra Bank, Hindustan Unilever, UltraTech Cement, Tata Steel and Adani Ports were the biggest gainers.

ICICI Bank, IndusInd Bank, Asian Paints, Tech Mahindra, HCL Technologies, Infosys, Tata Consultancy Services and Larsen & Toubro were among the laggards.

Foreign Institutional Investors (FIIs) bought equities worth Rs 14,064.05 crore on Friday, according to exchange data.

Published - September 23, 2024 05:51 pm IST