Mumbai (Maharashtra): The stock market soared following the Federal Reserve's announcement of the conclusion of its two-year interest rate-hiking policy on Thursday. The central bank anticipates lower borrowing costs in 2024, maintaining steady interest rates. A near-unanimous projection among 17 of 19 Fed officials suggests an expected decrease in the policy rate by the end of 2024.
The Sensex experienced a surge, opening 662.30 points higher at 70,245.39, while the Nifty marked a strong opening at 21,110.75, reflecting a gain of 184.40 points. Among the Nifty companies, 40 witnessed advances, contrasting with 10 declines. In the Nifty index, technology companies emerged as the top gainers, with HCL Technologies, Tech Mahindra, Wipro, Infosys, and LTIMindtree leading the way.
Conversely, Power Grid, Nestle India, Asian Paints, Sun Pharma, and Tata Consumer Products found themselves among the top losers. The GIFT Nifty is currently trading at 21,204.50, showcasing an uptick from the previous spot close of 21,033. The index reached a high of 21,289.50, reflecting a bullish outlook influenced by the assurance from the US Federal Chief regarding the absence of interest rate hikes.
Varun Aggarwal, founder and managing director, Profit Idea, said, "The GIFT Nifty is currently trading at 21,204.50, reflecting an uptick from the previous spot close of 21,033. The index reached a high of 21,289.50. The domestic market outlook is bullish, influenced by the assurance from the US Federal Chief regarding the absence of interest rate hikes".
Aggarwal said, "US stocks achieved new yearly highs following the Fed's announcement of three projected rate cuts in 2024. The Nasdaq Composite rose by 1.16 per cent to 14,701.57, the S&P 500 increased by 1.21 per cent to 4,699.69, and the Dow Jones Industrial Average climbed by 1.22 per cent to 37,025.37".
In the global market scenario, US stocks achieved new yearly highs following the Fed's announcement of three projected rate cuts in 2024. The Nasdaq Composite rose by 1.16 per cent to 14,701.57, the S&P 500 increased by 1.21 per cent to 4,699.69, and the Dow Jones Industrial Average climbed by 1.22 per cent to 37,025.37.
"Gold prices surged to a one-week high as the US Federal Reserve hinted at the conclusion of its tightening cycle and a prospect of reduced borrowing costs in 2024, leading to a decline in the dollar and bond yields", said Aggarwal.
Aggarwal stated, "WTI Oil prices touched a five-month low, settling at USD 69 a barrel. Foreign Institutional Investors (FIIs) purchased shares worth INR 4711 crores in the previous trading session. Additionally, the 10-year US Treasury note yield fell below 4.1 per cent, marking the lowest level since early August".
Additionally, the 10-year US Treasury note yield fell below 4.1 per cent, marking the lowest level since early August. The overall market sentiment remains positive, driven by the Federal Reserve's dovish stance and global economic indicators. (ANI)
