Sensex, Nifty set to open at new record high as Powell’s rate assurance drives global rally

India’s equity benchmarks BSE Sensex and NSE Nifty50 are set to open at a fresh record high on Thursday, tracking a rally in Asian peers after US Federal Reserve Chair Jerome Powell assured likely rate cuts this year and ruled out near-term risk of economic recession.

The GIFT Nifty was trading at 22,643.50 as of 7:54 a.m., indicating that the Nifty 50 will open above its Wednesday’s close of 22,474.05.

Asian markets were higher. Wall Street equities closed higher, after Fed Chair Powell said in a congressional testimony that rate cuts can be expected in 2024. He also added the central bank was on a “good path” toward achieving a soft landing of the economy and ruled out any short-term risk of recession.

India’s blue-chip indexes NSE Nifty and BSE Sensex recovered from a sluggish start to hit fresh all-time high levels on Wednesday. The Nifty hit a new record high of 22,497.20 while the Sensex scaled the 74,000 level for the first time.

Also read: Day trading guide for March 7, 2024: Intraday supports, resistances for Nifty50 stocks 

They are both up about 0.6 per cent for the week so far. If gains hold, it would be the fourth consecutive week of gains for the benchmarks.

The return of foreign buying in Indian equities, sustained domestic inflows, faster-than-expected economic growth and steady corporate earnings growth have aided the rise in domestic equities, according to analysts.

Both foreign and domestic investors were net buyers of Indian stocks on Wednesday. Foreign institutional investors added ₹2,767 crore of shares on a net basis, while domestic institutional investors bought stocks worth ₹2,150 crore.

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