Market recovers as rate cut prospect improves; Sensex, Nifty gain over 1%

Experts say US consumer inflation figures have again triggered chances of at least two interest rate cuts by the US Federal Reserve in 2024.
Sensex closed 676.69 points, or 0.93% higher at 73,663.72 while Nifty advanced 203.30 points, or 0.92% higher to settle at 22,403.85.
Sensex closed 676.69 points, or 0.93% higher at 73,663.72 while Nifty advanced 203.30 points, or 0.92% higher to settle at 22,403.85.Photo | Express

NEW DELHI: Domestic equity market made a swift recovery from last week’s aggressive sell-off which was triggered by concerns related to the outcome of 2024 General Elections. The local benchmark indices - BSE Sensex and NSE Nifty - extended this week’s gain and ended higher by nearly 1% each on Thursday, all thanks to robust buying across sectors during fag-end of the session.

Experts say the buying was driven by strong global trends as lower-than-expected US consumer inflation figures have again triggered chances of at least two interest rate cuts by the US Federal Reserve in 2024.

Sensex closed 676.69 points, or 0.93% higher at 73,663.72 while Nifty advanced 203.30 points, or 0.92% higher to settle at 22,403.85. During the intraday session, the Sensex hit a low of 72,530 while the Nifty bottomed at 22,054 level. In the broader market, Nifty SmallCap 100 and Nifty MidCap100 surged 0.84% and 0.88%, respectively.

“The domestic market experienced a late surge, driven by strong global trends that pointed to lower-than-expected US consumer inflation figures, which suggests at least two rate cuts in 2024. Buoyancy in the broader market continues with exports rising despite global economic uncertainties, leading the heavyweights’ sectors such as banking, IT, and industrials to outperform,” said Vinod Nair, head of research, Geojit Financial Services.

Prashanth Tapse, Senior VP (Research), Mehta Equities, said at a time when FIIs have been ploughing out funds from domestic equities, news of new stocks being added to the MSCI index, which is expected to bring in fresh FPI flows, has brought some cheers to the markets. Foreign institutional investors sold shares (net) worth `776 crore on Thursday while domestic institutional investors bought (net) shares worth `2,128 crore.

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