Sensex, Nifty hit record highs as US Fed cuts rates; banks lead gains
Mumbai, Sep 19 (PTI) Benchmark equity indices Sensex and Nifty climbed to fresh record high levels on Thursday in line with firm global trends after the US Federal Reserve announced the first cut in policy rate in more than four years.
The 30-share BSE Sensex climbed 236.57 points or 0.29 per cent to settle at a lifetime high of 83,184.80. During the day, it jumped 825.38 points or 0.99 per cent to scale a new all-time intra-day high of 83,773.61.
The NSE Nifty gained 38.25 points or 0.15 per cent to 25,415.80. During the day, it surged 234.4 points or 0.92 per cent to hit a fresh intra-day record peak of 25,611.95.
From the 30 Sensex firms, NTPC, Nestle, Titan, Kotak Mahindra Bank, Maruti, Hindustan Unilever, Bharti Airtel and HDFC Bank were the biggest gainers.
HCL Technologies, Tata Consultancy Services, Adani Ports, Larsen & Toubro, JSW Steel, State Bank of India, Tech Mahindra and Bajaj Finance were among the laggards from the pack.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong ended in positive territory. European markets were quoting higher. The US markets ended lower on Wednesday.
"The benchmark indices concluded with a minor gain after hitting record highs post the US Fed's more than expected interest rates cut of 50 bps and hinted for further reduction. The substantial rate cut sparked concerns over global slowdown, resulting in profit-booking in mid & small cap trading at premium valuation," said Vinod Nair, Head of Research, Geojit Financial Services.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,153.69 crore on Wednesday, according to exchange data.
"The 50 bps rate cut is a bold stance by the US Fed to revitalise their subdued economy, which will in turn open the door for other global central banks, including RBI to kick-start the softer interest rate regime," Vijay Bharadia, Founder, Wallfort Financial Services Ltd, said.
Global oil benchmark Brent crude jumped 1.21 per cent to USD 74.54 a barrel.
The BSE benchmark dropped 131.43 points or 0.16 per cent to settle at 82,948.23 on Wednesday. The NSE Nifty also declined 41 points or 0.16 per cent to close at 25,377.55. PTI
