The markets in Mumbai opened at a record high on Thursday, with Nifty starting at 25,030.95 and BSE Sensex surging to a record high of 82,082. These gains were attributed to favourable global market trends and hints of a rate cut by Fed Chair Jerome Powell in September. According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, Powell’s comments on a possible rate cut and the normalizing US economy are positive for global equity markets.
In the Nifty 50, Maruti, JSW Steel, Hindalco, Coal India, and Tata Motors were top gainers, while Mahindra & Mahindra, BPCL, Infosys, Ultratech Cement, and Sunpharma were among the top losers. The broad market indices on the NSE also saw gains, with all sectoral indices opening on a positive note. Over the past six months, the Nifty 50 has surged more than 15 per cent and the BSE Sensex has gained more than 14 per cent since the budget announcement by the central government on July 23.
Despite the positive trends, sustaining the rally may be challenging due to stretched valuations. Vijayakumar noted that if both FIIs and DIIs turn buyers, the market could see a significant jump, but maintaining the upward momentum may prove difficult. The global markets showed mixed results, with Asia largely following Wall Street’s gains. The Dow Jones and S&P 500 both rose, while the Nasdaq surged. The US dollar and Treasury yields fell after the Fed meeting, and Brent crude prices continued to rise.
Overall, the Indian markets are currently enjoying a bullish trend, supported by global market trends and positive indicators from the US economy. While there may be challenges in sustaining the rally, experts remain optimistic about the market’s performance in the near future. Investors will be watching closely for further developments and announcements that could impact market movements in the coming days.
