Sensex, Nifty Rebound on Fed Rate Cut Hopes, Foreign Fund Inflows
Mumbai: Benchmark indices Sensex and Nifty rebounded in early trade on Wednesday, mirroring gains in global markets amid growing expectations of a US Federal Reserve rate cut and renewed foreign fund inflows.
The 30-share BSE Sensex rose 287.94 points to 84,916.10, while the 50-share NSE Nifty advanced 86.65 points to 26,022.85.
Among major gainers were Asian Paints, Tata Steel, Trent, Larsen & Toubro, State Bank of India, and Adani Ports. On the downside, Mahindra & Mahindra, Bajaj Finance, Eternal, and Axis Bank traded lower.
“Global markets remain bullish, supported by the sustained uptrend in the US. The market is eyeing a potential 25 bps rate cut by the Fed, though the commentary on quantitative tightening will be crucial,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Across Asia, South Korea’s Kospi, Japan’s Nikkei 225, and Shanghai’s SSE Composite were all trading higher, while US markets closed on a positive note overnight.
Foreign Institutional Investors (FIIs) were net buyers, pumping in ₹10,339.80 crore into equities on Tuesday, according to exchange data.
“A dovish stance from the Fed could further boost liquidity into emerging markets like India, helping Sensex and Nifty maintain momentum near record highs,” said Ponmudi R, CEO of Enrich Money.
Meanwhile, Brent crude edged down 0.08% to USD 64.35 per barrel.
“Despite volatility, the strong FII inflows of over ₹10,000 crore provided confidence to markets,” noted Prashanth Tapse, Senior VP (Research) at Mehta Ltd.
On Tuesday, the Sensex had fallen 150.68 points (0.18%) to 84,628.16, while the Nifty slipped 29.85 points (0.11%) to 25,936.20.
