The Sensex and Nifty 50 surged to record highs on September 16, buoyed by upbeat global cues and strength in energy and banking sectors. The US Federal Reserve's upcoming monetary policy decision, where investors are hopeful for an interest rate cut also added fuel to the rally.
Nifty 50 hit an all-time high of 25,445.70, while the Sensex scaled a milestone of 83,184.34. At 9.50 AM, the Sensex was up 256 points, or 0.3 percent, at 83,147, and the Nifty 50 climbed 70 points to 25,427. Market breadth remained positive, with 2,016 shares advancing, 1,202 declining, and 123 unchanged.
Prashanth Tapse, Senior VP (Research) at Mehta Equities said that investor sentiment is optimistic ahead of the Fed's September 17-18 meeting.
"The short-term trend for Nifty remains bullish," said Deepak Jasani, Head of Retail Research at HDFC Securities, adding that Nifty 50 is likely to face resistance at 25,527, and find support at 24,885 in the near term.
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Excluding Nifty FMCG, all 12 other sectoral indices posted gains. HUL, Varun Beverages, and Britannia weighed on the Nifty FMCG, pulling it down by 0.8 percent.
Among the top laggards on Nifty 50, Nestle, SBI Life, Hero MotoCorp, Britannia, and HUL dropped between 0.3-2.2 percent. In contrast, Tata Steel, Grasim, Hindalco, NTPC, and Adani Enterprises led the gainers, climbing 1-2 percent.
The broader market saw gains as well, with the BSE Midcap inching up 0.3 percent and the BSE Smallcap advancing by 0.5 percent. Nifty Midcap 100 rose 0.5 percent and hit a record high of 60,408 at open.
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Asian markets presented a mixed bag this morning, as China and South Korea were closed for the Mid-Autumn Festival, and Japan observed Respect for the Aged Day. Hong Kong's Hang Seng Index dropped by half a percent, weighed down by disappointing Chinese data over the weekend. August factory output, retail sales, and investment figures missed forecasts, while urban unemployment hit a six-month high and home prices fell at their sharpest pace in nine years.
Across the Pacific, the three major US indices closed last week on a high note, with the S&P 500 and Nasdaq Composite delivering their best weekly performance of 2024.
All eyes are now on the Fed's policy meeting, where many anticipate the first interest rate cut since 2020. The CME FedWatch Tool indicates a 41 percent chance of the target rate dropping to 5.00-5.25 percent, and a 59 percent chance of it falling further to 4.75-5.00 percent, from the current 5.25-5.50 percent.
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