Sensex Hits Historic 83,000 Mark, Nifty Crosses 25,400: Market Soars on Rate Cut Optimism

On September 12, Indian stock markets rallied to record-breaking highs as Sensex and Nifty surged over 1.5%. The rally was driven by positive global cues and optimism surrounding a possible rate cut by the Federal Reserve. Auto, metal, and energy stocks led the gains, pushing indices to their highest levels.

Key Highlights:

• Sensex reaches an all-time high of 83,116.
• Nifty crosses the 25,400 mark for the first time.
• US inflation falls to 2.5%, boosting rate cut hopes.
• All sectors see green, led by auto, metal, and energy stocks.

Market Overview:

At the close of trading, the Sensex jumped by 1,439.55 points (1.77%) to reach 82,962.71, while the Nifty climbed 470.40 points (1.89%) to end at 25,388.90. The market witnessed a broad-based rally, with around 2,228 stocks advancing, 1,564 declining, and 103 remaining unchanged.

Sectoral Performance:

• Nifty Metal: The top-performing sector of the day, boosted by gains in Hindalco, Nalco, NMDC, and Vedanta. Reports suggest that China is preparing to reduce interest rates on over $5 trillion of mortgages, driving metal stocks higher.
• Auto and Energy: These sectors also contributed significantly to the rally, with strong performances across the board.

Global Cues Driving the Rally:

The market surge was largely influenced by softer-than-expected US inflation data, which showed a 3-year low of 2.5% in August. This has increased the likelihood of the Federal Reserve initiating a rate cut cycle during its September 18 meeting. The CME-FedWatch tool revealed that the probability of a 25-basis-point rate cut has now risen to 85%, compared to 60% just a week ago.

Outlook for September 13:

Vinod Nair, Head of Research, Geojit Financial Services: “The bulls dominated the market, taking the indices to new highs. Optimism around global rate cuts, including from the ECB and US Fed, has fueled positive sentiment. The next phase of the rally will be driven by domestic inflation data, IIP results, and improved corporate earnings in Q2.”

Ajit Mishra, SVP, Research, Religare Broking: “The markets hit new highs during the weekly expiry day, driven by strong buying in heavyweight stocks across sectors. This sharp rally could see Nifty testing the 25,550+ level soon. On the downside, the 24,900-25,150 range should act as a support zone in case of any correction. Investors should focus on trending sectors and prioritize large-cap and mid-cap stocks.”

Indian stock markets continue to ride high on the global rate cut optimism, with Sensex breaching the 83,000 mark and Nifty soaring past 25,400. Investors should stay tuned for domestic inflation data and the Federal Reserve’s decision on rate cuts, which could influence the market’s next move.

Tags: Sensex record high, Nifty surges past 25,400, US inflation data impact, rate cut optimism, Indian stock market rally, metals and auto stocks, global market cues