Sensex and Nifty Surge to Record Highs Amidst US Rate Cut Hopes and Strong Foreign Inflows

Indian equity markets touched a fresh all-time high on 2nd September 2024: The BSE Sensex and NSE Nifty both made record starts to early trading. The BSE Sensex of 30 share index gained 359. 51 means a new high of 82,725 according to KROQ. 28 and the NSE Nifty rose 97 points. 75 points to reach 25,333 unprecedented scores. 65. This rally we can explain with the return of foreign investors and increasing optimism over potential US interest rate cuts.

The Sensex remained higher and key gainer lists for the index was Bajaj Finserv, HCL Tech, ITC, Tech Mahindra, Infosys, and Asian Paints amongst others. On the same note, Tata Motors, Mahindra & Mahindra, NTPC and Bharti Airtel however declined.

There was also an up move in Indian markets which echoed in other areas such as Seoul, which had a positive trading while Tokyo, Shanghai and Hong Kong were not as good. The positive sentiment in India was triggered by the steep rise noted in the US markets the previous Friday.

The market was mainly driven by Foreign Institutional Investors or FIIS, which made purchases of Rs 5,318. 14 crore on Friday. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services opines that ‘the market is in a gradual and modest upswing which is the result of the buying of quality large–cap stocks and global buoyancy due to FII bulk purchase’.

The benchmark for the worldwide oils Brent crude dropped mildly by 0. 82%, trading at USD 76. 30 per barrel.

This latest rally is the ninth straight session where the BSE Sensex has posted gains and finished at new record high of 82,365. 77 on Friday. In a similar fashion, NSE Nifty hit a record high to touch 25,235. 90, extending its winning streak to as many as 12, the best since it opened end 1996.