EEB Sensex & Nifty50 on Thursday gave great applause to the pacifist comment of the US Federal Reserve. The BSE Sensex rose over 900 points to hit all-time highs as most sectors joined the market rally. At 10:56 am, Sensex was trading at 70,402, up more than 800 points or 1.18%. Nifty50 was at 21,153, up 226 points or 1.08%. This is the third time this week that the BSE Sensex has crossed the 70,000 mark.
In the Sensex group, prominent gainers included Tech Mahindra, HCL Technologies, Wipro, Infosys, Bajaj Finance, Tata Consultancy Services, Bajaj Finserv and ICICI Bank. Meanwhile, Power Grid, Nestlé, Asian Paints and Hindustan Unilever were among those who experienced a refusal.
According to ET, the market capitalization of all companies listed on BSE increased by Rs 3 lakh crore to reach Rs 354.19 lakh crore.
Why are Sensex and Nifty50 recovering and will the rally continue?
The US Federal Reserve decided to keep interest rates unchanged for the third consecutive meeting and indicated a series of cuts for next year. Officials unanimously agreed to keep the target range for the federal funds benchmark rate at 5.25% to 5.5%, the highest since 2001. Projections showed no further interest rate increases for the first time since March 2021.
US markets also registered a positive movement, with the Dow closing at an all-time high above 37,000 points. The S&P 500 and the Nasdaq index both rose 1.4%. Wall Street has been on an upward trend since October, mainly due to expectations of interest rate cuts.
Experts predict a Santa rally in the coming days, following the Federal Reserve's peaceful message. VK Vijayakumar, chief investment strategist at Geojit Financial Services, is of the view that the current market rally could lead to new market highs and a pre-election rally. The Federal Reserve's recent announcement suggests the end of the tightening cycle, potentially paving the way for three rate cuts in 2024, contrasting with the market's anticipation of four cuts. The notable rise in the Dow is expected to propel several indexes to unprecedented highs, he said.
Deven Mehata, research analyst at Choice Broking, says Nifty could find support at 20,900, followed by 20,850 and 20,800, with immediate resistance at 21,020, followed by 21,100 and 21,150.
Umeshkumar Mehta, chief investment officer at Samco Mutual Fund, told Reuters he anticipates further gains for Indian equities driven by robust economic growth from government capital expenditure, expectations of political stability in 2024, a favorable global rate outlook and trading conditions. favorable liquidity.



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