News Brief

Sensex And Nifty Close At Record Highs After US Federal Rate Cuts, Indian Stock Market Surge Attributed To FPI Inflows

Nishtha AnushreeSep 23, 2024, 04:02 PM | Updated 04:01 PM IST
Traders rejoice as Sensex surges at Bombay Stock Exchange. (Anshuman Poyrekar/Hindustan Times via Getty Images) 

Traders rejoice as Sensex surges at Bombay Stock Exchange. (Anshuman Poyrekar/Hindustan Times via Getty Images) 


Indian benchmark indices continued their winning streak for the fourth consecutive trading session, reaching new record highs, bolstered by strong support from the financial services sector.

Rallies in realty and auto stocks also contributed, alongside the ongoing recovery in PSU stocks. By the end of Monday's session, all major sectoral indices closed in positive territory, LiveMint reported.

The Nifty 50 hit a record high of 25,956 points before settling at 25,934, up 0.55 per cent. Similarly, the S&P BSE Sensex reached a fresh high of 84,922 points, closing at 84,864 points, 0.38 per cent higher than the previous close.


Out of the 50 Nifty 50 constituents, 34 ended the day in the green. Bajaj Auto led the pack with a 3.7 per cent increase, with Mahindra & Mahindra, ONGC, Hero MotoCorp, SBI Life Insurance, and others also seeing gains between 2 and 3.3 per cent.

The rise in the Nifty 50 came after the Federal Open Market Committee (FOMC) decided to lower the Fed funds rate by 50 basis points. Historically, India’s equity markets have performed well for three to six months following a rate cut in a non-recessionary environment.

However, global brokerage Goldman Sachs noted that India's gains were more modest compared to other Asia-Pacific markets. Experts attribute the surge in Indian equities to strong Foreign Portfolio Investor (FPI) inflows.

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