The Indian stock markets opened at fresh record highs on Thursday as the US Federal Reserve maintained interest rates. The Fed also signaled only one rate cut by the end of the year, despite high inflation. The Nifty hit a lifetime high of 23,481, climbing 159 points from the previous close of 23,322. The Sensex surged 539 points to reach a record high of 77,145. All Sensex stocks, except for Hindustan Unilever Limited (HUL) and ICICI Bank, were trading positively. Top gainers included Nestle, Wipro, and Tech Mahindra, with increases of up to 1.90%.
Market capitalisation
The market capitalization of BSE-listed firms rose to Rs 432.04 lakh crore, reflecting the bullish market sentiment.
Expert analysis
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented, “The Fed chief Jerome Powell has kept rates unchanged and hinted at only one rate cut in 2024 and possibly four rate cuts in 2025. In India, May CPI inflation declined to 4.75%, and core inflation is at only 3.1%. This paves the way for a rate cut by the MPC in October. The takeaway from the inflation numbers is that the disinflation process is well on track. From the market perspective, this is positive news, particularly for banking stocks.”
Sectoral gains
Capital goods, consumer durables, and IT stocks were the top sectoral gainers, with their indices rising 405 points, 405 points, and 384 points respectively on the BSE.
Broader market movement
The BSE midcap and small cap indices also saw gains, rising 218 points and 220 points respectively. Market breadth was positive with 2,255 stocks rising against 738 stocks falling on the BSE. Additionally, 118 shares remained unchanged.
Previous session recap
On June 12, the benchmark indices ended higher. The Sensex rose 149.98 points, or 0.20%, to close at 76,606.57, while the Nifty gained 58.20 points, or 0.25%, to end at 23,323.
Also read | India’s retail inflation eases to 12-month low of 4.75 per cent in May