Sensex, Nifty Hit Record Highs: Fed Rate Cut Fuels Rally

Mumbai, Aug 1 (PTI) Benchmark BSE Sensex jumped 388 points to breach the 82,000-level for the first time while broader Nifty spurted 108 points to hit the record 25,000-mark in early trade on Thursday after the US Federal Reserve indicated a rate cut by September.

The 30-share BSE Sensex soared 388.15 points, or 0.47 per cent, to hit an all-time intra-day high of 82,129.49 in early trade.

The broader Nifty of NSE scaled the record 25,000 level for the first time, rising 127.15 points, or 0.50 per cent, to 25,078.30.

Among Sensex shares, Maruti rose 2.93 per cent following its stellar June quarter results.

Adani Ports, Power Grid, JSW Steel, and Tata Steel were also among major gainers.

Gains in index heavyweights HDFC Bank, Reliance Industries, and ICICI Bank shot the index to record high levels.

On the other hand, M&M, Sun Pharma, ITC, Infosys and TCS were among the losers, capping index gains.

"The Fed chief signalling a possible rate cut in September is positive for global equity markets. More important, his comments that the US economy is normalising is a shot in the arm for bulls," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

Indicating a rate cut by September, US Federal Reserve Chair Jerome Powell said that progress has been made in reducing inflation to the 2 per cent target which is a sign that the Fed is moving closer toward reducing the key interest rate for the first time in four years.

In Asian markets, Tokyo, Shanghai and Hong Kong were trading in the negative territory while Seoul was in the green on Thursday.

Foreign institutional investors were net sellers in the capital markets on Wednesday and offloaded shares worth Rs 3,462.36 crore, according to exchange data.