December 14, 2023
New Delhi, India
Global Rally Sparks Record Highs in Indian Stock Market
In a remarkable turn of events, the Indian stock market witnessed a historic surge, reaching record highs as global markets rallied on the dovish stance of the US Federal Reserve. Here’s a breakdown of the key factors driving this bullish trend.
Dovish Fed Sparks Optimism
The US Federal Reserve’s decision to maintain current interest rates while hinting at rate cuts in 2024 triggered positive reactions across the globe. India, too, experienced a strong market opening, with all sectoral indices trading in the green.
Sensex and Nifty Reach Unprecedented Heights
The benchmark indices, Sensex and Nifty, recorded unprecedented gains, with Sensex surging 1,000 points and Nifty breaching the 21,200 mark. This surge is attributed to the global market rally and the Fed’s indication of a potential end to its monetary tightening cycle.
Meanwhile both Nifty and Sensex closed at 21,182.70 up +256.35
Sectoral Performance: IT and Realty Shine
The information technology and realty sectors emerged as the frontrunners, with the Nifty IT index witnessing a substantial 3% jump. Leading IT companies such as HCLTech, Tech Mahindra, LTIMindtree, Infosys, and Wipro were among the top gainers.
Also Read: India’s Wholesale Inflation Sees 8-Month High, Raises Concerns Over GDP Growth
Economic Indicators and Corporate Developments
While the Fed maintained existing rates, its “dot plot” revealed an unexpected projection of a 75 basis point decrease in rates by 2024. Additionally, India’s Wholesale Price Index-based inflation rose to 0.26% in November. Corporate news, including Hindalco’s plans to invest ₹800 crore in a battery foil manufacturing facility in Odisha, also fueled positive sentiments.
Positive Outlook on Indian Growth
The Asian Development Bank (ADB) raised India’s growth forecast to 6.7% for the current financial year, citing higher-than-expected second-quarter numbers. This optimistic outlook adds to the positive sentiment in the Indian stock market.
Stocks in Focus and Market Highlights
Several stocks captured market attention, including Fusion Micro Finance, NBCC, Religare Enterprises, SBI, Escorts Kubota, RIL, and IndiGo. The market opened at record highs, with the Nifty 50 trading above 21,000 and Sensex surpassing the 70,500 mark for the first time.
Conclusion: Riding the Global Wave
The dovish tone from the US Fed ignited a rally in global markets, and India’s stock market was no exception. With banking, IT stocks, and index heavyweight RIL leading the surge, investors are cautiously optimistic amid signs of economic recovery. As the market continues to respond to global cues and domestic developments, investors are advised to stay informed and vigilant in the dynamic financial landscape.
Also Read: RBI Announces Sovereign Gold Bond Schemes 2023-24: Series III & IV Details Revealed
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