Benchmark indices opened at fresh record highs on Thursday as US Federal Reserve kept interest rates unchanged. The central bank also indicated only one rate cut was anticipated before the year end despite elevated inflation level.
Nifty hit its lifetime high of 23,481, rising 159 points against the previous close of 23,322. Sensex also zoomed 539 pts to a record high of 77,145. All Sensex stocks except HUL and ICCI Bank were trading in green. Nestle, Wipro, Tech Mahindra were the top Sensex gainers, rising up to 1.90% in early deals.
Market cap of BSE-listed firms rose to Rs 432.04 lakh crore.
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "The Fed chief Jerome Powell has kept rates unchanged and has hinted at only 1 rate cut in 2024 and possibly 4 rate cuts in 2025. In India, May CPI inflation has declined to 4.75% and core inflation has come at only 3.1%. This paves the way for a rate cut by the MPC in October. The takeaway from the inflation numbers is that the disinflation process is well on track. From the market perspective, this is positive news, particularly for banking stocks."
Capital goods, consumer durables and IT stocks were the top sectoral gainers with their indices rising 405 points, 405 points and 384 points, respectively on BSE.
BSE midcap and small cap indices gained 218 pts and 220 pts, respectively. Market breadth was positive with 2255 stocks rising against 738 stocks falling on BSE. 118 shares were unchanged.
Previous session
Benchmark indices ended higher on June 12. Sensex rose 149.98 points or 0.20 percent to 76,606.57 and Nifty was up 58.20 points or 0.25 percent at 23,323.