Domestic benchmark indices continue their upward momentum, with both indices hitting fresh highs. The BSE Sensex reached a record high of 85,525 while the Nifty-50 hit a new all-time peak of 26,113 in the afternoon session.
At 2 pm, BSE Sensex was trading up by 293 points to 85,463, and Nifty-50 was at 26,092 with a gain of 87 points. Both the indices rose around 0.3 percent.
Meanwhile, the broader market at BSE was trading low. The MidCap index and the SmallCap index lost more than half percent when the reports last came in.
Among the top performers on the Nifty were Maruti Suzuki, Tata Motors, Shriram Finance, Grasim Industries, and M&M. In contrast, shares of ONGC, Cipla, NTPC, Hero MotoCorp, and L&T were among the worst performers.
Sector-wise, the auto and metal indices each gained 2 percent, while FMCG and PSU Bank indices rose 1 percent. However, the capital goods index dipped by 0.6 percent.
The BSE Midcap index ended the day flat, and the Smallcap index declined by 0.4 percent.
The US Federal Reserve’s decision to loosen interest rates by a steep 50 basis points has provided fresh momentum to Indian stocks. A reduction in US rates typically encourages capital flows to markets with higher policy rates.
With a more pronounced rate cut in the US, there is a greater inclination for capital to seek alternative investment destinations, including India.
The ongoing buying by foreign portfolio investors (FPIs) has also contributed to the positive movement in stock indices. FPIs have increased their investments in India, drawn by the prospect of better returns due to the difference in interest rates.
Data from NSDL shows that FPIs have purchased Rs 49,459 crore worth of Indian stocks in September alone. This marks the fourth consecutive month of net buying by these investors.