Stock market indices surge as global markets rally after Fed rate cut

by Psu Connect
Date: 20-09-24

The Nifty 50 opened at 25,525.95, marking a gain of 110.15 points or 0.43%, while the Sensex rose by 418.24 points or 0.50% to reach 83,603.04.

Stock market indices surge as global markets rally after Fed rate cut

On Friday, India's benchmark indices saw a significant increase, following a global market surge driven by the U.S. Federal Reserve's decision to reduce interest rates by 50 basis points.

The Nifty 50 opened at 25,525.95, marking a gain of 110.15 points or 0.43%, while the Sensex rose by 418.24 points or 0.50% to reach 83,603.04.

“US markets rebounded strongly, with the S&P 500 touching its 39th all-time high. Asian markets are largely positive as well. India saw a surprising negative figure for FII flows on Wednesday. Many foreign brokerages are highlighting India’s high valuations as a concern, with the MSCI India Index trading at 24 times forward PE,” said Ajay Bagga, Banking and Market Expert.

“Domestic flows continue to be strong but if FII selling continues, it will make it tough for the Indian markets to rally sustainably,” Bagga added.

Among sectoral indices on the NSE, Nifty Metal led gains in the early session with a 0.96% rise. Nifty Bank, Nifty FMCG, and Nifty Auto also posted gains. Top gainers in early trade included Tata Steel, JSW Steel, and Mahindra & Mahindra, while Tata Motors, LTIM, and Dr. Reddy’s were among the biggest decliners.

Asian markets also get ignited by the Fed’s rate cut, with Japan’s Nikkei 225 surging over 2%, Hong Kong’s Hang Seng gaining 1.65%, and South Korea’s KOSPI up 0.78%.