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In a remarkable display of strength, India’s domestic equity benchmarks, the BSE Sensex and Nifty 50, remained in the green zone throughout the trading session today. By the end of the day, both indices experienced a significant surge. For the first time, the Sensex crossed the 83,000 mark, while the Nifty breached 25,400. This record-breaking performance occurred on the day of the weekly expiry, buoyed by impressive support from the banking, energy, IT, and auto sectors.
Market Close and Intraday Peaks
The Sensex closed up by 1.77%, ending the day at 82,962.71, while the Nifty gained 1.89%, closing at 25,388.90. During intraday trading, the Sensex reached a high of 83,116.19 and the Nifty peaked at 25,433.35. Notably, Nestlé was the only stock that closed in the red among the Sensex and Nifty constituents.
Why the Surge in the Last Hour?
The market’s surge in the final hour of trading can be attributed to several factors. First, anticipation surrounding the release of the Consumer Price Index (CPI) data heightened market optimism. Last month, the US CPI data showed a slight uptick in consumer inflation with core inflation remaining stable. This led to increased expectations of a 0.25% rate cut by the US Federal Reserve in their upcoming meeting on September 17-18, with the probability rising from 66% to 85%. Conversely, the likelihood of a 0.50% cut decreased from 34% to 15%.
Future Outlook
Looking ahead, VK Vijaykumar, Chief Investment Strategist at Geojit Financial Services, pointed out that Foreign Institutional Investors (FIIs) have shifted to a bullish stance and are actively investing in the market. Their recent buying activity in the cash market has provided strong support, signaling potential strength for the market.
