A fresh round of optimism over a possible Fed pivot and firm global cues gave Dalal Street bulls a shot in the arm. Late-hour buying in domestic markets drove BSE barometer Sensex to a new all-time high of 62412.33 on Thursday.
The 30-pack index, which rallied nearly 900 points intraday, settled at its new closing high of 62,272.68, up 762.10 points or 1.24%.
Meanwhile, its NSE counterpart, Nifty50, settled 216.85 points or 1.19% higher at 18,484.10. The index hit a new 52-week high of 18,529.70 earlier today.
Dalal Street investors were left richer by Rs 2.46 lakh crore today as the market capitalisation of all BSE-listed stocks hit Rs 283.9 lakh crore.
Here are the key factors behind the market rally today:
Slowdown in Fed rate hikes
The latest meeting minutes from the Federal Reserve showed that most policymakers expect a slower pace of interest rate hikes even if they are uncertain how high the benchmark rate will rise. Analysts said smaller rate hikes by the Fed are positive for risk assets as well as for safe-haven assets like gold.
“Led by broad-based buying, domestic indices witnessed solid gains as investors digested the latest FOMC meeting minutes, which hinted that the rate hike cycle may be slowing down,” Vinod Nair, Head of Research at Geojit Financial Services, said.
Firm global markets
Earlier in Asian markets, Japan’s Nikkei 225 advanced 0.95%, and South Korea’s Kospi surged 0.96%, while China’s Shanghai Composite declined 0.25%. In the last trading session, US markets closed in the green. Dow Jones Industrial Average rose 1.08%, S&P 500 surged 0.59%, and Nasdaq Composite advanced 0.99%. The US markets are closed today for the Thanksgiving holiday.
Crude oil prices
Falling crude prices further boosted investor sentiment. Crude oil prices dropped over talks of a possible price cap on Russian oil and a rise in US product stockpiles, Nair said.
Brent crude futures fell 0.3% to $85.13. U.S. crude oil futures eased 0.2% to $77.74/barrel. They had tumbled more than 3% on Wednesday as the Group of Seven (G7) nations considered a price cap on Russian oil above the current market level.
The Indian rupee rose to 81.63 to the US dollar from 81.8450 in the previous session, amid the broad decline in the US dollar after Federal Reserve minutes reaffirmed expectations of a down-shift in the pace of rate hikes.
Monthly F&O expiry
The buying was also led by short covering by traders, as today was the last day of the current month’s derivatives expiry series.
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