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BSE Sensex surges over 650 points, Nifty above 21,000 as US Fed Reserve gives Dalal Street reason to rally – Times of India


BSE Sensex and Nifty50 surge in early trade! Dalal Street resumed its party on Thursday with the benchmark indices zooming in early trade on the back of a dovish stand by the US Federal Reserve that has spurred hopes of rate cutes by the American central bank in the coming months.
At 9:24 AM, BSE Sensex was up over 650 points at 70,238, a rise of 0.94%.Nifty50 also surged over 180 points to 21,111, a rise of 0.88%.
Domestic stock markets had been lacklustre on Wednesday as investors had awaited the outcome of the US Federal Reserve’s policy decision. Siddhartha Khemka, Head of Retail Research at Motilal Oswal had said that he expects the market momentum to continue on the higher side, supported by lower-than-expected inflation data, a fall in oil prices, and FII buying.
The Nifty showed upside recovery on Wednesday according to ET, indicating the possibility of further upside in the short term. Nagaraj Shetti of HDFC Securities mentioned that there is a higher chance of the Nifty reaching all-time highs of 21040+ levels in the near future. Immediate support is placed at 20770.
The Dow Jones industrial average reached a new record closing high for the first time since January 2022. The S&P 500 and Nasdaq also rallied by more than 1% each on Wednesday after the Federal Reserve indicated that it would end its interest rate-hiking policy and expects lower borrowing costs in 2024. The Dow increased by 1.4%, the S&P 500 rose by 1.4%, and the Nasdaq gained 1.4%.
Asian traders reacted positively to the Fed’s “dot plot” adjustment, which indicates a faster pace of rate cuts next year. Oil prices rose in early Asian trade on Thursday, continuing their gains from the previous session. This followed a larger-than-expected weekly withdrawal from US crude storage and the Fed’s signaling that it will reduce borrowing costs in 2024.



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