The Nifty 50 index and Sensex soared to new heights today, opening at record highs in response to the US Federal Reserve's decision to maintain its current interest rates, signaling a dovish stance.
Beginning the day on a high note, the Nifty-50 index commenced trading at an unprecedented 21,110, a substantial leap from its previous close of 20,926. It swiftly surged to a fresh peak of 21,120 surpassing its prior high of 21,037
Similarly, the Sensex marked an impressive opening at 70,146, significantly higher than its previous close of 69,584. Scaling further heights, it reached a pinnacle of 70,306.
The Federal Reserve's decision to maintain interest rates within the range of 5.25-5.5% was accompanied by a noteworthy indication. They hinted at the possibility of three quarter-point cuts to their benchmark interest rate throughout the upcoming year. This dovish turn by the Fed triggered a surge in the Dow, closing above 37,000 for the first time. Simultaneously, the Nasdaq and the S&P 500 attained their best closing levels in nearly two years.
The prospect of the interest rate hike cycle concluding and the anticipation of at least three rate cuts anticipated in 2024 have been identified as significant positives for the market's future outlook.
This optimistic market sentiment follows the reassurance provided by the Federal Reserve, establishing an upward trajectory for Indian indices at the beginning of this trading session. Investors are buoyed by the anticipation of a favorable economic environment facilitated by the Fed's dovish stance.