Dalal Street erupts in global risk-on rally

Mumbai: Snapping the three-day falling streak, benchmark Sensex rebounded by 1,022 points while Nifty reclaimed the 26,000 level on Wednesday on across-the-board buying aided by a rally in global peers amid growing hopes of a US Fed rate cut and fresh foreign fund inflows. The 30-share BSE Sensex jumped 1,022.50 points or 1.21 per cent to settle at 85,609.51. During the day, it surged 1,057.18 points or 1.24 per cent to 85,644.19. The 50-share NSE Nifty zoomed 320.50 points or 1.24 per cent to end at 26,205.30, just 10 points shy of its all time closing high. The broader index scaled record intra-day high of 26,277 on September 27, 2024. In intra-day trade, Nifty rallied 330.35 points or 1.27 per cent to 26,215.15.

“Indian markets staged an impressive rally on Wednesday, with broad-based buying across sectors reflecting the sharp risk-on sentiment in global equities. The upmove was supported by growing expectations of a US Federal Reserve rate cut in December, after the latest US economic releases, including September retail sales and producer price data, signalled softening demand and cooling inflation,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Increasing optimism surrounding a potential truce between Russia and Ukraine also bolstered the investor sentiment, experts said.

“Renewed optimism over a potential rate cut by the US Federal Reserve in December, along with expectations of a 25-basis-point Repo rate cut by the Reserve Bank of India early next month, improved investor sentiment. Additionally, easing crude oil prices- driven by hopes of progress toward peace between Ukraine and Russia- provided further support,” Ajit Mishra, Sr V-P (research), Religare Broking Ltd.