Stock Market News: The cut in interest rates by the US Federal Reserve has had a clear impact on global markets. After a long period of weak sentiment and three consecutive days of decline, the Indian stock market made a strong comeback on Thursday. The balanced policy of the US Fed and the rate cut of 0.25 percent filled new energy among the investors, due to which both Sensex and Nifty ended the trading with gains. The rise in vehicle and metal sectors was the most effective in the market, which strengthened the indices despite fluctuations throughout the day.
BSE’s 30-share Sensex recovered from initial weakness and closed at 84,818.13 with a gain of 426.86 points or 0.51 percent. During trading, while on one hand it had slipped to a low of 84,150.19, on the other hand it also reached an upper level of 84,906.93. Similarly, NSE Nifty also showed a strength of 140.55 points or 0.55 percent and closed at 25,898.55. At the highest level of the day, Nifty had reached 25,922.80, which shows the increasing confidence among investors.
Shares of these companies rose
The biggest support for the rise in the market came from those companies whose shares performed strongly. Among the major Sensex companies, Eternal, Tata Steel, Kotak Mahindra Bank, UltraTech Cement, Maruti Suzuki, Sun Pharma, HDFC Bank, Tech Mahindra, Tata Motors, Infosys, Mahindra & Mahindra, Reliance Industries and HCL Tech were among the gainers. Better demand, improvement in results and sectoral strength took these companies to new heights. On the other hand, decline was seen in Asian Paints, Bajaj Finance, PowerGrid, ICICI Bank, Bharti Airtel and Titan, which made it clear that sector-wise gap still persists in the market.
Analysts believe that Fed’s rate cut has given a new direction not only to the Indian market but also to the global investment sentiment. According to Vinod Nair, Research Head, Geojit Investments Limited, the decline in 10-year bond yield in America means that the possibility of aggressive investment by foreign institutional investors may be less in the near future. However, on a short-term basis, this step has brought relief to emerging markets. Additionally, demand in India’s auto sector is stronger than expected, which supported the overall market performance. The IT sector also gained on expectations of increased spending.
What do experts say?
Talking about global markets, most of the indices in Asia remained in decline. Japan’s Nikkei, Hong Kong’s Hang Seng, South Korea’s Kospi and China’s Shanghai Composite all remained under pressure. Overvaluation of AI companies and rising bond yields in Japan negatively impacted sentiment in regional markets. There was a bullish atmosphere in European markets during afternoon trading, while American markets had registered strength on Wednesday.
Foreign institutional investors sold Rs 1,651 crore on Wednesday, due to which there was some pressure on the market. At the same time, domestic institutional investors provided stability to the market by purchasing about Rs 3,752 crore. The price of Brent crude, the international standard of crude oil, fell by 1.22 percent to $ 61.45 per barrel, which is a positive sign for the Indian economy.
Also read: Uber starts B2B logistics services in Bengaluru, know what are B2B and B2C services
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
