Sensex settles 300 pts higher from day's low, Nifty reclaims 25,000: Fed rate cut hopes among key factors behind market rise

Sensex, Nifty rise in September 11 trade. 

The equity benchmark indices settled higher on Thursday, with the Sensex recovering more than 300 points from the day's low, and Nifty settling above 25,000 tracking positive cues from Asian markets amid expectations of a US Federal Reserve rate cut next week.

Renewed optimism over the resumption of India-US trade talks also supported investor sentiment.

Rallying for the fourth day in a row, the Sensex climbed 123.58 points or 0.15 percent to settle at 81,548.73. During the day, it rallied 217.07 points or 0.26 percent to 81,642.22. The Nifty rose by 32.40 points or 0.13 percent to close at a nearly three-week high of 25,005.50, marking its seventh consecutive day of gains.

NTPC, Axis Bank, Power Grid, Bharti Airtel, Eternal and Sun Pharma were the major gainers.

1) US Fed rate cut hopes: Analysts said hopes of a US Fed rate cut and easing trade concerns following President Donald Trump’s statement that Washington and New Delhi would resume negotiations helped markets stay in the green.

"Hopes of a US-India trade deal and record highs in the S&P 500 and Nasdaq on softer US PPI keep bullish momentum intact," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

2) Strong global cues: In Asia, South Korea’s Kospi, Japan’s Nikkei 225 and Shanghai’s SSE Composite traded higher, while Hong Kong’s Hang Seng was in the red. US markets had ended on a mixed note on Wednesday.

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3) Crude declines marginally: Global oil benchmark Brent crude eased 0.07 percent to USD 67.44 a barrel. A decline in crude prices is generally positive for Indian equities as it helps lower import costs.

Nifty outlook

"We will look for consistent trades above 25,012 to pursue upsides, with downside marker placed near 24,930. Upside objective remains at 25,400, though it may take time, with 25,100 as the nearest hurdle. Failure to move past 25,100 or a fall below 24,700 could delay further gains," said Anand James, Chief Market Strategist, Geojit Financial Services.

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