• July 21, 2024

Sensex, Nifty hit record highs on global market rally

A traffic signal in the foreground of the Bombay Stock Exchange’s on Dalal Street seems to reflect the mood of the stock markets in Mumbai. File photo
| Photo Credit: The Hindu

Benchmark equity indices Sensex and Nifty hit their all-time high levels on Thursday, December 14, 2023, tracking a global market rally after the U.S. Federal Reserve kept its key interest rate unchanged and signalled that they expect to make three quarter-point cuts to their benchmark interest rate next year.

Cheering the move, the 30-share BSE Sensex jumped 796.64 points to hit its all-time peak of 70,381.24 in early trade. The Nifty rallied 222.1 points to reach its record peak of 21,148.45.

Among the Sensex firms, Tech Mahindra, HCL Technologies, Wipro, Infosys, Bajaj Finance, Tata Consultancy Services, Bajaj Finserv and ICICI Bank were the major gainers.

Power Grid, Nestle, Asian Paints and Hindustan Unilever were among the laggards.

In Asian markets, Seoul, Shanghai and Hong Kong were trading in the positive territory while Tokyo quoted lower.

The U.S. markets ended with significant gains on Wednesday.

The Federal Reserve kept its key interest rate unchanged on Wednesday for a third straight time, a sign that it is likely done raising rates after having imposed the fastest string of increases in four decades to fight painfully high inflation.

More expectations

The Fed’s policymakers also signalled that they expect to make three quarter-point cuts to their benchmark interest rate next year.

“The clear dovish message from the Fed yesterday has set the stage for a smart Santa Claus rally in the coming days, and this can even trigger a pre-election rally that can take the markets to a series of new highs.

“The takeaway from the Fed message yesterday is that the tightening cycle is over and three rate cuts are possible in 2024. The record-breaking rally in the Dow will send many indices to new records,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Foreign Institutional Investors (FIIs) continued to remain buyers as they bought equities worth ₹4,710.86 crore on Wednesday, according to exchange data.

Global oil benchmark Brent crude climbed 0.30% to $74.48 a barrel.

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