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16-04-2025 Wednesday 04:13 PM
Sensex and Nifty soar to new highs following Fed's unexpected 50bps rate cut, global markets show mixed reaction.
The Indian stock market saw a significant rally on Friday, with benchmark indices BSE Sensex and Nifty50 hitting new lifetime highs. This surge was largely fueled by a surprise 50 basis points interest rate cut by the US Federal Reserve. The BSE Sensex climbed past 83,600, while the Nifty50 broke above 25,550. As of 9:20 AM, the Sensex was trading at 83,636.77, up by 689 points (0.83%), and Nifty50 stood at 25,571.70, gaining 194 points (0.77%).
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal, commented that a 25 basis points rate cut was already factored in, and the larger 50 basis points cut lifted market sentiment. However, he cautioned that the market could experience volatility in the near term, particularly in rate-sensitive sectors, and that the Fed's future outlook on the rate cut cycle would be closely watched.
Nagaraj Shetti of HDFC Securities highlighted that Nifty's short-term trend remains positive, with any dips towards support levels of 25,100-25,200 offering potential buying opportunities. He also noted that a strong move above 25,500 could push Nifty to even higher levels.
Global markets showed mixed results. In the U.S., stocks ended with small losses after the larger-than-expected Fed rate cut, while S&P 500 futures gained 0.5%. Japan’s Topix rose 2%, and Australia's S&P/ASX 200 edged up 0.2%. In Europe, Euro Stoxx 50 futures climbed 0.7%.
In the currency markets, the euro, Japanese yen, and offshore yuan weakened slightly against the U.S. dollar. Meanwhile, oil prices dipped in Asia following concerns about the U.S. economy after the rate cut.
On the derivatives front, several stocks, including Balrampur Chini Mills, Hindustan Copper, and PNB, remain in the Futures & Options ban period today. Foreign portfolio investors (FPIs) were net buyers, purchasing shares worth Rs 1,154 crore, while domestic institutional investors (DIIs) bought shares totaling Rs 152 crore. The net long position of FPIs increased from Rs 2.2 lakh crore to Rs 2.37 lakh crore between Tuesday and Wednesday.
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