The BSE Sensex at 85,043.44 indicates market activity and investor sentiment.At the National Stock Exchange(NSE) several sectors made a strong showing as they opened in positive territory. The Banking, Auto, and Financial Services sectors, along with Media, Metal, Pharma, Healthcare, Consumer Durables, and Oil and Gas, all started the day on a high note. This widespread green opening reflects optimism among investors and could signal robust market activity ahead.
In a historic milestone, the Sensex has surpassed 85,000 points for the first time,extending its record-breaking run in the Indian stock market.This surge is driven by substantial gains in the steel and automotive sectors, underscoring strong investor confidence and a robust economic outlook.
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This upward trend occurs amid favorable global conditions, highlighting vibrant market dynamics.
The stock market has maintained its position at record highs in the wake of the US Federal Reserve’s rate cut. On September 18, the Fed decreased its interest rate by 0.5 percent, establishing a target range of 4.75-5 percent. This was the first rate cut by the US Federal Reserve since early 2020.In a remarkable display of strength, the Sensex and Nifty have hit all-time highs, with the Sensex surpassing the significant 85,000 mark while The Nifty has commenced trading at 25,975 points.Following BSE’s significant 50 basis point (bps) interest rate cut by the US Federal Reserve, investor sentiment has improved, boosting the indices.
Early Trading Highlights: Tata Steel and Hindalco Surge, Infosys and Wipro Slip
During the first hour of trading, Tata Steel, JSW Steel, Hindalco, Power Grid, and Nestle India emerged as the top gainers. In contrast, Infosys, Bajaj Finance, Wipro, Hindustan Unilever, and Divis Labs ranked among the top losers.
At the National Stock Exchange (NSE), sectors such as Banking, Auto, Financial Services, Media, Metal, Pharma, Healthcare, Consumer Durables, and Oil and Gas opened strongly in the green. In contrast, the Financial Services, FMCG, IT, PSU Banks, Private Banks, and Realty sectors began the day in the red, reflecting declines.
Ajay Bagga: “Positive Outlook for Indian Markets Amid Geopolitical Tensions and Gold Demand”
According to market analyst Ajay Bagga, “The futures for the Indian market indicate a positive start. Nonetheless, volatility is expected to rise because of the month-end and quarter-end derivatives expiry on Thursday. The US dollar is firm, and gold is seeing heightened buying as a safe haven given the geopolitical issues in West Asia.”
Take a look at his additional comments on X.
The Sensex recently crossed the 84,000 mark, just four days after reaching 83,000 on September 12. Earlier milestones included 82,000 on August 1, 81,000 on July 18, and 80,000 on July 3. This swift advancement reflects the robust momentum driving the market forward
Historically, India’s equity markets have shown strong performance for three to six months after a rate cut in a non-recessionary context. The surge is also linked to significant inflows from Foreign Portfolio Investors (FPIs). The swift climb from 80,000 to 85,000 points occurred in under 11 weeks.
“While the market has hit new peaks, there are no indications of a reversal or signs of fatigue.”
“Despite reaching new highs, there are no indications of a market reversal or fatigue at this time. The ongoing trend of higher highs and higher lows continues, suggesting that the index may aim for a target of 26,250, in line with the 1.618 percent Fibonacci extension,” said Varun Aggarwal, MD of Profit Idea.
“Market sentiment is currently positive, with expectations of a potential rise towards 26,200 in the near term. Key support is expected to be found around the 21-Day Exponential Moving Average at 25,700” he stated.
