Sensex, Nifty hit fresh highs after US Fed’s Dovish Pivot
by mydhanush on 14 December 2023, 4 min read
Bulls are all charged up as Dalal Street has witnessed yet another record high. This comes after the US Federal Reserve on December 13 left benchmark rates unchanged. At 10:15 AM, Sensex surged 838 points at 70,422 mark. Nifty zoomed 231 points and was trading at 21,153 level.
US Fed also indicated that the tightening of monetary policy was likely over. Fed chair Jerome Powell also hinted at rate cuts in 2024, something which the market had not been expecting.
The Fed’s decision to take a dovish view signals that the central bank is confident that inflation will be in check even as the economy continues to chug higher.
Among the sectors, the IT index jumped over 3 percent led by Mphasis, Coforge and Persistent Systems which gained 4-6 percent each followed by L&T Technology, HCL Tech and LTI Mindtree.
Bank Nifty added 1.5 percent in the morning session. It was led by IndusInd Bank, ICICI Bank and Punjab National Bank which were up 2 percent each. These were followed by Axis Bank, Bandhan Bank and Kotak Mahindra Bank.
However, pharma stocks were under pressure. The top drags included Cipla, Abbott India, Lupin and Sun Pharma among others.
Global markets edge higher:
The US markets also ended on a record high note overnight following dovish Fed signals. The S&P 500 topped 4,700, the Dow Jones Industrial Average hit a record and the Nasdaq 100 extended this year’s surge to over 50 percent.
The US Federal Reserve kept interest rates unchanged at 5.25-5.5 percent for the third consecutive time on December 13. It switched to a dovish outlook for 2024.
Asian stocks broadly rallied on Thursday morning, after the US Federal Reserve flagged the end of its tightening cycle and struck a dovish tone for the year ahead. MSCI’s broadest index of Asia-Pacific shares outside Japan added 1.6%.
However, Japan’s Nikkei shed 0.70 percent and was trading at 32,695.72 mark. Hang Seng jumped 1.09 percent at 16,408.26 while Kospi spiked 1.23 percent at 16,408.26 mark.
Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.
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