Sensex reclaims 80,000, Nifty above 24,300: Trump's Fed comments among key factors behind market rally

Sensex reclaims 80,000, Nifty above 24,300: Trump's Fed comments among key factors behind market rally.

Benchmark stock indices Sensex and Nifty climbed for the seventh consecutive session in early trade on Wednesday, supported by gains in IT, auto and realty stocks.

Steady foreign inflows and a sharp rally in global markets also boosted the domestic sentiments.

Sensex jumped 580.91 points or 0.73 percent to 80,176.51, reclaiming the 80,000-level. The broader NSE Nifty advanced 173.10 points or 0.72 percent to 24,340.35.

The investors have gained nearly Rs 33.55 lakh crore in market capitalisation over the past six trading sessions.

Key factors behind rise today

1) Continuous FII buying: According to exchange data, foreign institutional investors (FIIs) remained net buyers and bought shares worth Rs 1,290.43 crore on Tuesday. "The sustained FII buying has been a strong pillar of support for Indian equities," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

2) Trump eases rhetoric against Fed Chair: Market participants also took comfort from the global environment, especially the tone adopted by US President Donald Trump. Trump, who had earlier criticised Fed Chair Jerome Powell for not lowering interest rates fast enough, told reporters on Tuesday that he had no plans to remove Powell. "I have no intention of firing him," he said, while still urging the central bank to consider rate cuts.

Analysts believe that Trump's latest comments have helped soothe market nerves, especially after weeks of speculation over potential interference in the Fed's functioning. A move to remove the Fed chief, experts say, could have led to heightened volatility and shaken investor trust in the US financial system.

3) Hopes of US-China trade talks: Trump signalled that tariffs on Chinese imports may come down significantly in the event of a trade deal, though not to zero. His remarks were seen as an attempt to ease tensions with China and brought some relief to global markets.

4) Positive global cues: Asian markets traded firm on Wednesday. Key indices in South Korea, Japan, China and Hong Kong were in the green. Overnight, Wall Street posted solid gains, with the Nasdaq rallying 2.71 percent, the Dow rising 2.66 percent and the S&P 500 climbing 2.51 percent.

Technical outlook

Anand James, Chief Market Strategist at Geojit, said the formation of a 'spinning top' candlestick on the chart may hint at a temporary pause or hesitation in the current rally. “Unless confirmed by further signals, this could just be a pause, not a reversal. We see the December highs around 24,303–24,857 as the next possible targets,” he said. However, he cautioned that any fall below 23,870 could alter the outlook, with support seen near 23,600.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.