Nifty, Sensex Soar Following Global Market Rally on Fed Rate Cut

Nifty and Sensex surged at market open on Friday, driven by a global market rally following the US Federal Reserve's interest rate cut. Sectoral indices like Nifty Metal led gains. International markets also responded positively, with significant boosts in Asian and US indices.

Nifty and Sensex opened strong on Friday, boosted by a global market surge after the US Federal Reserve's decision to cut interest rates. The Nifty 50 index started at 25,525.95 points, climbing 110.15 points or 0.43 per cent, while the Sensex began at 83,603.04 points, a rise of 418.24 points or 0.50 per cent.

Experts indicated that Foreign Institutional Investors (FIIs) have adjusted their positions in Indian markets due to concerns over stock valuations. Despite this, domestic investor support remained robust. 'US markets bounced back strongly, achieving the 39th all-time high on the S&P 500 for the year. Asian markets are largely positive as well. India saw a surprise negative number for FII flows on Wednesday. Most foreign brokerages pinpoint India's valuations as a tactical issue, with MSCI India Index at 24 times one year forward PE. While domestic flows remain strong, continued FII selling will challenge Indian markets' sustained rally,' said Ajay Bagga, Banking and Market Expert.

Sectoral indices on the NSE saw positive movements, with Nifty Metal leading gains, up by 0.96 per cent. Nifty Bank, Nifty FMCG, and Nifty Auto also posted gains. Top gainers in early trading included Tata Steel, JSW Steel, and Mahindra & Mahindra. Conversely, Tata Motors, LTIM, and Dr Reddy's shares were top losers.

Asian markets echoed this rally, with Japan's Nikkei 225 surging over 2 per cent, Hong Kong's Hang Seng rising 1.65 per cent, and South Korea's KOSPI index gaining 0.78 per cent as of the latest update. US markets saw significant growth on Thursday, with the Dow Jones Industrial Average and S&P 500 hitting new all-time highs. Investors reacted positively to the Federal Reserve's decision to lower interest rates by 0.5 percentage points on Wednesday.

(With inputs from agencies.)