Nifty and Sensex Surge Following Fed's Interest Rate Cut

Nifty 50 and Sensex opened strong on Friday amid a global rally after the US Federal Reserve's rate cut. Nifty 50 rose 0.43%, and Sensex climbed 0.50%. FIIs shifted positions over India's valuations, while domestic flows remained strong. Key sectoral indices and stocks showed positive early trading trends.

Indian stock indices Nifty 50 and Sensex opened strongly on Friday, buoyed by a global market rally following the US Federal Reserve's decision to cut interest rates. The Nifty 50 started at 25,525.95 points, gaining 110.15 points, or 0.43%, while the Sensex opened at 83,603.04 points, up by 418.24 points, or 0.50%.

Market experts noted that Foreign Institutional Investors (FIIs) have shifted their positions in Indian markets due to concerns about overvaluation. Nonetheless, domestic investors continued to show strong support. Market guru Ajay Bagga remarked, "US markets bounced back emphatically, achieving the 39th all-time high on the S&P 500 for the year. Asian markets are largely positive as well. Despite a surprise negative figure for FII flows in India on Wednesday, foreign brokerages are identifying India's high valuations as a tactical issue. The MSCI India Index is trading at 24 times one-year forward PE. Domestic inflows remain robust, but continued FII selling will challenge the sustainability of an Indian market rally."

Among sectoral indices on the NSE, Nifty Metal topped gains in the opening session, rising 0.96%. Nifty Bank, Nifty FMCG, and Nifty Auto also posted gains. Early trading saw Tata Steel, JSW Steel, and Mahindra & Mahindra as top gainers, while Tata Motors, LTIM, and Dr. Reddy's were among the top losers.

The Asian markets similarly rallied, spurred by the Fed's rate cut. Japan's Nikkei 225 surged more than 2%, Hong Kong's Hang Seng climbed 1.65%, and South Korea's KOSPI index increased by 0.78%. In the U.S. markets on Thursday, stocks soared, with the Dow Jones Industrial Average and S&P 500 hitting new all-time highs. Investors responded favorably to the Federal Reserve's decision to lower interest rates by half a percentage point on Wednesday.

(With inputs from agencies.)