The Indian stock market started the week on a high note, with the Nifty index hitting a new all-time high of 25,445.70, breaking its previous record of 25,430. This upward momentum was largely driven by growing optimism around a potential interest rate cut by the U.S. Federal Reserve, which is expected to attract foreign investments and shape market sentiment in the coming days.
Market Opening Highlights
At the opening bell, the Sensex showed a gain of 100 points, while the Nifty traded just below the 25,400 mark. Some notable early stock movers included:
- Adani Power saw a 4% increase in its share price.
- Tata Technologies rose by 3%.
By 9:48 AM, the Nifty stood at 25,434.45, and the Sensex had climbed to 83,153.55, up by almost 262 points from the previous close.
Impact of U.S. Federal Reserve Rate Cuts on Indian Markets
Investors are keenly watching developments in global markets, especially the impact of the U.S. Federal Reserve’s monetary policy decisions. The prospect of a larger-than-expected rate cut by the Fed is raising optimism in Indian equities, as such a move could lead to increased foreign inflows. A rate cut in the U.S. often makes emerging markets like India more attractive to foreign investors seeking higher returns.
This anticipation is a major factor behind the current bullish trend in the Nifty and Sensex, as foreign investments play a significant role in driving market gains.
Sensex and Nifty After Recent Rally
On Friday, after a record-breaking rally, the equity indices took a slight breather, with both the Sensex and Nifty closing marginally lower due to profit-booking. Despite the pause, the overall market sentiment remains positive, with analysts expecting further gains in the coming sessions.
With global markets keeping a close eye on the Federal Reserve’s actions, any rate cut decision could serve as a catalyst for the continued growth of Indian indices.
