Nifty and Sensex reached new highs with an upturn in foreign investments.
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Summary: Amid a strong and diversified market, 12 out of 13 key sectors saw gains.
Stock market news: Monday saw benchmark indices hit all-time highs, driven by hopes for more foreign investment after the Federal Reserve's interest rate cut last week. This action has sparked a risk-on attitude among investors worldwide.
The Nifty 50 index and the S&P BSE Sensex both reached record highs at 9:22 am, up by about 0.3% each. Since the Federal Reserve cut interest rates by 50 basis points on September 18, the benchmarks have continuously reached fresh highs.
“Bulls got a shot of steroids from the Fed when it cut interest rates. More than the rate cut, the Fed's optimistic commentary is sharply lifting markets,” stated VK Vijayakumar, chief investment strategist at Geogist Financial Services.
According to him, the Fed's statement suggests that US inflation is under control and that a recession is unlikely, which is good news for emerging economies like India and global equity.
Out of 13 major sectors, 12 had increased, indicating widespread market strength. The small-cap index jumped 0.5%, while mid-cap equities increased 0.2%, indicating strong local market activity.
Asian markets opened favorably, with the MSCI Asia ex-Japan index up 0.3%, boosted by China's recent move to decrease its repo rate to spur economic growth.
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