Subscribe To Print Edition About The Tribune Code Of Ethics Download App Advertise with us Classifieds
search-icon-img
  • ftr-facebook
  • ftr-instagram
  • ftr-instagram
search-icon-img
Advertisement

Upbeat trends in US, Asian markets power Sensex to reach record high

In sync with the global market rally, Indian benchmark indices - BSE Sensex and NSE Nifty50 - surged to historic highs, ending with gains of over 1 per cent each. At closing, the Sensex gained as much as 1,359.51 points...
  • fb
  • twitter
  • whatsapp
  • whatsapp
featured-img featured-img
Photo for representational purpose only. File photo
Advertisement

In sync with the global market rally, Indian benchmark indices - BSE Sensex and NSE Nifty50 - surged to historic highs, ending with gains of over 1 per cent each. At closing, the Sensex gained as much as 1,359.51 points or 1.63 per cent to settle at 84,544.31. The index scaled a record high of 84,694.46 during intraday trade.

Similarly, Nifty50 touched an all-time high of 25,849.25 before ending Friday’s session with a gain of 375.15 points or 1.48 per cent at 25,790.95.

So, the question rises in the mind of investors that what are the reasons behind the continued upward trend. According to stock market analysts, Asian markets continued their upward trend on Friday, fuelled by a major interest rate cut in by the US Fed. The Nikkei rose 1.68 per cent, while the ASX 200 increased 0.05 per cent, and the Hang Seng climbed 0.88 per cent.

Advertisement

Analysts added that the current upswing in the stock market results from market forecasts of increased foreign inflows into India following the Fed rate decrease, combined with the fact that US Jobless Claims are at their lowest point since May 2024 alleviating concerns about the US market’s slowdown

Palka Arora Chopra, Director, Master Capital Services Ltd, said: “Overnight, the Dow Jones Industrial Averages and S&P 500 index surged to 1.7 per cent. Asia saw a rise in markets in Korea, Japan, and Hong Kong. Domestic stocks followed the global rally’s path. The US labour market is not failing; rather, it is simply slowing down, according to the good labour market data released recently. Since inflation is under control, a scenario with declining interest rates calls for a soft landing for the US. This is good news for the world’s equity markets.”

Advertisement

In addition to this, the Bank of Japan held its benchmark interest rate steady at around 0.25 per cent, the highest rate since 2008, following a two-day meeting. Similarly, China opted to maintain its key lending rates which were the main reason behind upward trend.

Advertisement
Advertisement
Advertisement
Advertisement
'
tlbr_img1 Home tlbr_img2 Opinion tlbr_img3 Classifieds tlbr_img4 Videos tlbr_img5 E-Paper