The Nifty 50 index surged to the 25,000-point mark on Monday, August 26. The index opened 80 points higher at 25,030, marking a new record high. Similarly, the Sensex crossed 82,000 for the first time, hitting a peak of 82,129, up 388 points from the previous close of 81,741.
This follows U.S. Fed Chair Jerome Powell’s suggestion of a potential rate cut next month, which was welcomed by investors. Speaking at the Jackson Hole Symposium in Wyoming, Powell noted, “The direction is clear, but the timing and pace of rate cuts will be guided by incoming data, the evolving outlook, and the balance of risks.”
As of 10:15 AM, the Nifty 50 was trading at 25,014.30, up 0.77%.
Several factors contributed to this rally:
- Global Markets: U.S. stocks rallied on Friday after U.S. Federal Reserve Chair Jerome Powell hinted at possible rate cuts in September. The Nasdaq Composite rose by 1.47%, the S&P 500 gained 1.15%, and the Dow Jones Industrial Average jumped by 1.14%.
- Currency and Commodities: The US Dollar Index was down 0.36%, while crude oil prices also saw an increase, with WTI crude trading at $75.40 and Brent crude at $77.44.
- Investor Activity: Foreign institutional investors (FII) bought shares worth ₹1,944.48 crore, while domestic institutional investors (DII) purchased shares worth ₹2,896.02 crore on August 23, 2024.
This strong performance in the stock market reflects positive investor sentiment and optimism fueled by both domestic and global factors.
