Indian benchmark indices Sensex and Nifty surged over 1.5 percent in the fag end of September 12 session to touch an all-time high of 83,116 and 25,433, respectively, tracking strong global cues. All sectors popped in green, with auto, metal, and energy stocks leading majority of the gains.
The optimism came on the back of soft US inflation print, which was at a 3-year low of 2.5 percent in August, clearing the way for Federal Reserve to start its rate easing cycle from next week. Swap markets are pricing in about 85 percent change of a 25 basis point rate cut in the September 18 meeting, significantly up from 60 percent a week ago, showed CME-FedWatch tool.
At close, the Sensex was up 1,439.55 points or 1.77 percent at 82,962.71, and the Nifty was up 470.40 points or 1.89 percent at 25,388.90. The market breadth steered towards gainers as around 2,228 shares advanced, 1,564 shares declined, and 103 shares were unchanged.
Sectorally, Nifty Metal index was the top performer of the day led by gains in Hindalco, Nalco, NMDC, and Vedanta. According to a Bloomberg report, China was looking to cut interest rates on more than $5 trillion of outstanding mortgages this month.
Outlook for September 13
Vinod Nair, Head of Research, Geojit Financial Services
The bulls took charge towards the end of the day and lifted the indices to a new high, mirroring the bullish global trend. The rate-cut optimism across the globe (ECB & US Fed) has provided a positive impetus to the global market. The subsequent leg of the rally will be influenced by the outcome of domestic inflation and IIP data while the corporates core earnings are forecast to improve in Q2 on a QoQ basis.
Ajit Mishra – SVP, Research, Religare Broking
The markets reached a new high on the weekly expiry day, gaining nearly two percent. While the session remained subdued for the most part, strong buying in heavyweight stocks across sectors propelled the index sharply upward in the final hours. As a result, the Nifty closed at 25,388.90, up 1.9%. All sectors contributed to the rally, with metals, auto, and energy leading the gains. The broader indices also followed suit, with the midcap index hitting a new high.
This surge has reversed the previous weakness, positioning Nifty to potentially test the 25,550+ zone. On the downside, the 24,900-25,150 range is expected to provide support in the event of any dip. Participants should focus on sectors and themes displaying consistent trends and prioritize large-cap and major midcap stocks for fresh buying opportunities
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
