Stock market starts well after US Fed’s decision

Opening Bell:  Indian key indices BSE Sensex and Nifty 50 hit new all-time highs as markets opened on Thursday. The rally came after Asia-Pacific markets and Wall Street futures jumped after the Jerome Powell-led US Federal Reserve announced a 50 basis point rate cut on Wednesday evening.

At the time of market opening, the BSE Sensex was trading at 83,389 with a gain of 441 points. However, after some time the Sensex jumped 782 points to reach the level of 83,730. At the same time, Nifty 50 was seen at 25,542 with a gain of 165 points and after a while it rose 224 points to reach the level of 25,602.

All sectors witnessed gains, with the IT index leading the way with a gain of 1.55% and the realty index rising by 1.10%. All other sectoral indices were also in the green.

Broader markets also witnessed gains, with BSE Midcap trading 0.59% up and BSE Smallcap trading 0.43% up.

How will the stock market start today?

The announcement of the US Fed’s interest rate cut may cause turmoil and panic in the Indian stock market. On the other hand, during trading on Wednesday, the benchmark Nifty 50 and S&P BSE Sensex fell by 0.16%. The Nifty 50 index closed at 25,377.55 and the Sensex at 82,948.23. These indices declined due to profit booking after touching new all-time highs during the day.

Around 07:30 am, Nifty was seen trading around 25,410. 

The US stock market saw a rise on Wednesday. 

Dow Jones Industrial Average futures closed up 166 points, or 0.4 percent, while S&P 500 futures added about 0.6 percent and Nasdaq 100 futures added 0.9 percent.

However, after a volatile day, Wall Street stocks ultimately closed lower on Wednesday. The S&P 500 and the Dow had earlier surged to new record highs following the Federal Reserve’s announcement.

The Fed on Wednesday lowered its interest rate to a range of 4.75% to 5.00%, down from 5.25% to 5.5% previously. Some investors were surprised by the decision and criticized such a large cut.

Japan’s Nikkei 225 was the top gainer in Asia-Pacific markets on Thursday. Both Nikkei and Topix saw a gain of about 2 percent.

Meanwhile, Hong Kong’s Hang Seng index futures indicated the HSI could have a flat start to today’s trade as they resume trading on Wednesday after a public holiday. The Taiwan weighted index rose 0.12 per cent, while South Korea’s blue-chip Kospi fell 0.51 per cent after opening higher. The small-cap Kosdaq, on the other hand, added 0.25 per cent. Australia’s S&P/ASX 200 index opened 0.15 per cent higher.

How was the market movement yesterday?

Major equity indices Sensex and Nifty closed lower on Wednesday after hitting new record highs in the morning session. IT stocks declined as investors booked profits ahead of the US Federal Reserve’s interest rate decision.

The 30-share BSE Sensex closed down 131.43 points or 0.16% at 82,948.23. Intraday, it rose 246.72 points or 0.29 percent to a lifetime high of 83,326.38.

The NSE Nifty also closed 41 points or 0.16% lower at 25,377.55. Intraday, it gained 63.65 points or 0.25 per cent to hit a new high of 25,482.20.