Markets extend gains as Fed rate cut hopes boost sentiment
Equity markets continued their upward trajectory on Thursday afternoon, building on morning gains as investors remained optimistic about potential interest rate cuts by the US Federal Reserve. The benchmark Sensex traded at 75,975.96 at 12:30 PM, advancing 526.91 points or 0.70 per cent from its previous close. Meanwhile, the broader Nifty50 index climbed 172.50 points or 0.75 per cent to 23,080.10.
Market breadth remained decisively positive with 2,476 stocks advancing against 1,370 declining on the BSE. Trading activity showed 58 stocks reaching their 52-week highs, while 86 touched their 52-week lows. Circuit filters were triggered for 260 stocks hitting upper limits and 174 stocks hitting lower limits.
Consumer durables and auto stocks led the charge, with Titan Company emerging as the top gainer on the NSE, surging 3.78 per cent to ₹3,192.70 on substantial volume of 7,77,305 shares. Other significant gainers included Eicher Motors rising 2.85 per cent to ₹5,246.50, Bharti Airtel advancing 2.76 per cent to ₹1,682.35, Bajaj Auto climbing 2.50 per cent to ₹7,915.10, and BPCL adding 2.43 per cent to reach ₹271.70.
On the losing side, Bajaj Finance topped the laggards with a decline of 0.98 per cent to ₹8,645.95, followed by UltraTech Cement dropping 0.75 per cent to ₹10,851.20. IndusInd Bank, Larsen & Toubro, and Adani Ports also featured among the top losers, falling 0.48 per cent, 0.46 per cent, and 0.43 per cent respectively.
Sectoral indices showed mixed performance, with the Nifty Bank index up 0.29 per cent at 49,846.10 and Financial Services gaining marginally by 0.14 per cent to 24,173.35. The Nifty Next 50 and Midcap Select indices added 0.59 per cent and 0.27 per cent respectively, indicating broad-based participation in the rally.
The market’s sustained momentum comes after the US Federal Reserve maintained interest rates but signaled potential cuts later this year, which has weakened the US dollar and lowered bond yields. This morning’s rally in technology stocks has expanded to include consumer durables and auto sectors in afternoon trading.
Gold and crude oil prices continued their upward trend amid inflation concerns, while defense stocks maintained their strong performance from the morning session, supported by positive export outlook and potential trade deals. Despite the overall bullish sentiment, analysts maintain their cautionary stance regarding near-term volatility and overbought conditions.
