Sensex, Nifty surge amid global markets rally on U.S. Fed rate cut plans

The Bombay Stock Exchange in Mumbai. File

Benchmark equity indices Sensex and Nifty surged nearly 1% on Thursday in tandem with a rally in global markets after the U.S. Fed projected three rate cuts this year.

Rising for the second day, the 30-share BSE Sensex jumped 539.50 points or 0.75% to settle at 72,641.19. During the day, it zoomed 780.77 points or 1.08% to 72,882.46.

The NSE Nifty climbed 172.85 points or 0.79% to 22,011.95.

From the Sensex basket, NTPC, Power Grid, IndusInd Bank, Tata Steel, Tata Motors, JSW Steel, Tech Mahindra and Larsen & Toubro were the biggest gainers.

Bharti Airtel, Maruti, ICICI Bank and Asian Paints were the laggards.

In Asian markets, Seoul, Tokyo, and Hong Kong settled significantly higher while Shanghai ended lower.

European markets were trading in positive territory.

Wall Street ended with remarkable gains on Wednesday. The S&P 500 jumped to an all-time high. The Dow Jones Industrial Average and the Nasdaq Composite also hit record-high levels.

“Domestic market is taking cues from the global market infusing optimism as the Federal Reserve signalled to remain on track for three interest rate cuts this year despite inflation staying above long-term target,” said Vinod Nair, Head of Research, Geojit Financial Services.

Global oil benchmark Brent crude dipped 0.08% to $85.88 a barrel.

Foreign institutional investors offloaded equities worth ₹2,599.19 crore on Wednesday, according to exchange data.

The 30-share BSE benchmark rebounded 89.64 points or 0.12% to settle at 72,101.69 on Wednesday. The NSE Nifty climbed 21.65 points or 0.10% to 21,839.10.