The benchmark indices surged to fresh record highs on Thursday as strong buying in heavyweight stocks at the fag end of the session lifted the Nifty 50 and Sensex by nearly 2 per cent—their biggest single-day advance in over three months.
The sharp rally drove the 30-share BSE Sensex to the 83,000 level for the first time.
The index, however, ended the session at 82,963 with a 1.8 per cent gain. The Nifty 50 rose 1.9 per cent to 25,389. This was the highest single-day gain since June 7. The gains were underpinned by inflows of Rs 7,695 crore from overseas funds. The rally, which came amid positive global cues, was supported by heightened expectations of a 25-basis point rate cut by the US Fed after the inflation data came in on expected lines, said Siddhartha Khemka, head of research, Wealth Management, Motilal Oswal Financial Services.
“The bulls took charge towards the end of the day and lifted the indices to a new high, mirroring the bullish global trend. The rate-cut optimism across the globe (ECB & US Fed) has provided a positive impetus to the global market,” added Vinod Nair, head of research, Geojit Financial Services.
Most Asian markets rallied, buoyed by a tech-fuelled rally on Wall Street. The S&P 500 had logged over 1 per cent gains on Wednesday, led by a rebound in technology stocks.
Reports that China may cut rates by 50 basis points on $5 trillion mortgages as soon as this month to boost consumption also boosted sentiments. European stocks also opened higher ahead of the latest monetary policy decision from the European Central Bank. The central bank was expected to slash rates again by 25 basis points later on Thursday. The pan-European Stoxx 600 was up over 1 per cent in the first half of the session.
In India, metal stocks were the biggest gainers, with the Nifty Metal index surging 2.9 per cent on hopes that a cut in interest rates in China will boost consumption.
The auto index also logged over 2 per cent gains. All the sectoral indices closed in the green. Hindalco Industries, Bharti Airtel, NTPC, and Shriram Finance were among the top gainers in Nifty 50 and Sensex. The expiry of derivatives contracts also supported the gains as it led to short covering, said experts.
The large-cap benchmarks outperformed the broader market indices. The Nifty Midcap 100 index ended with 1.2 per cent gains, while the Nifty Smallcap 100 index went up 1 per cent.
The combined market cap of BSE-listed companies rose by ₹6.6 trillion to touch a new high of ₹467.4 trillion ($5.6 trillion).
First Published: Sep 12 2024 | 8:28 PM IST
