Nifty-50 Hits 25,000 as US Fed’s Hints at Sept. Rate Cut Possibilities

Mumbai: NSE's benchmark index hit the 25,000 mark for the first time as the market opened on positive global cues.

The US Fed's dovish stance after the Federal Open Market Committee(FOMC) meeting pointing to increased likelihood of interest rate cut in September, led to a rally in the overnight US market.

BSE benchmark Sensex also hit 82,000 mark for the first time touching a new all-time high of 82,149.29 intraday.

Foreign portfolio investors were net buyers of equities worth Rs 2089.28 crore while domestic institutions were net sellers by Rs 337.03 crore.

The Nifty -50 index closed at 25,010 gaining 0.24 per cent or 59.75 points after hitting a new all-time high of 25,078.30 while the Sensex closed at 81,867 gaining 0.15 per cent or 126 points.

Nifty-50 took 10 months to travel from 20,000 hit on Sept.11, 2023, to 25,000 on Aug.1, 2024.

Broader market, which hit record highs a day earlier, saw some profit-taking. Nifty Mid-cap 50 and Nifty Mid-cap 100 fell 0.93 per cent and 0.85 per cent respectively.

"The benchmarks started positive taking cues from the global market following the Fed Chair’s indication that a rate cut might be considered at the September meeting due to easing inflationary pressures.

However, the broader market closed on a negative bias due to escalating geopolitical tensions in the Middle East leading to rising crude oil prices. Sector-wise, capital goods and realty were impacted by profit-booking coupled with auto sectors owing to below-expected monthly auto sales figures," said Vinod Nair, head-Research, Geojit Financial Services.

Due to high valuation concerns in the last few months, market has seen several phases of consolidation before further rise in tandem with supporting fundamentals like political stability, monsoon rains and a large base of retail investors participation directly and through mutual funds and insurance companies.

"25,000 on the Nifty is currently discounting FY25 earnings growth of 15 per cent fully.

Now, beyond 25,000 Nifty-50 would be tracking FY26 earnings which seems a bit too early to consider just yet. But still, Nifty can go up from here, but would be more comfortable in individual stocks in broader markets," said Manish Sonthalia, director & CIO, Emkay Investment Managers.

"It's a stock picker’s market and a vibrant stock picker’s market in the broader markets space," he added.

"The Indian equity market's new milestone reflects the resilience of the domestic economy.

Despite global volatility, India's economy remains strong, as indicated by the recent Union budget's emphasis on infrastructure, fiscal prudence, and rural welfare. While midcap and smallcap stocks have made significant gains, it is believed that large-cap stocks may see increased investor interest in the near future," said Neeraj Chadawar, head - Fundamental and Quantitative Research, at Axis Securities.

Traders trading in the market experienced technical issues like log-in difficulties in some brokerages'APPs on Thursday according to market sources.