Indian Equity Markets Start Strong Amid Anticipation Of US Fed Rate Cut

Indian equity markets opened on a positive note on Monday, buoyed by the upward momentum seen in American markets.

Investors are driving bullish sentiment in the market, fueled by optimism about a potential rate cut by the US Federal Reserve.

As of 9:44 AM, the BSE Sensex rose by 258 points, or 0.31%, reaching 83,149, while the Nifty 50 climbed 81 points, or 0.32%, to 25,437. Both indices recorded new all-time highs in early trading, hitting 83,184 for the Sensex and 24,445 for the Nifty.

Midcap and smallcap stocks also saw increased buying activity, with the Nifty Midcap 100 index rising by 300 points, or 0.50%, to 60,334, and the Nifty Smallcap 100 index up by 69 points, or 0.36%, at 19,575.

Within the Sensex constituents, NTPC, Axis Bank, Tata Steel, Kotak Mahindra, JSW Steel, Bajaj Finserv, L&T, Bajaj Finance, HDFC Bank, Titan, and Sun Pharma emerged as the top gainers. In contrast, Hindustan Unilever (HUL), Nestle, Tata Consultancy Services (TCS), and HCL Technologies were among the notable losers.

Sector-wise, gains were prominent in PSU banks, financial services, metals, real estate, private banking, and infrastructure sectors. Conversely, the IT and FMCG sectors faced headwinds.

Indian Markets Eye Federal Reserve Rate Decision; Experts Expect Impact On Trends

Market experts are focusing on the Federal Reserve’s upcoming rate decision scheduled for Wednesday, which is likely to impact near-term market trends.

“The first-rate cut by the Fed in four years is a foregone conclusion, the only uncertainty is about the extent of the rate cut, that is, whether the cut will be 25 bp or 50 bp. The market will also be keenly watching the Fed commentary on the evolving economic outlook,” they noted.

Market experts further added, “Since the undertone of the Indian equity market continues to be bullish, it makes sense to remain invested. Among sectors, IT and pharma are showing strength.”

Despite the mixed performance in global markets, with Tokyo, Shanghai, and Hong Kong in the red while Seoul, Jakarta, and Bangkok registered gains, US stock markets closed positively on Friday, providing further support to Indian equities.

On the investment front, foreign institutional investors (FIIs) purchased equities worth Rs 2,364 crore on 13 September, while domestic institutional investors (DIIs) also bought stocks worth Rs 2,532 crore on the same day, reflecting a strong interest in the Indian market.

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