Global equity indexes rise in tandem with the US Federal Reserve’s rate-cutting intentions

Following the US Federal Reserve’s maintenance of its forecast of three rate cuts this year, benchmark stock indexes Sensex and Nifty participated in a rise in worldwide markets on Thursday. Experts state that the key industries driving today’s increase in the index were construction, metals, PSU banks, media & entertainment, energy, consumer durables, financial services, and pharmaceuticals.

The Nifty 50 closed at 22,012, up 173 points, while the Sensex concluded 540 points higher at 72,641 levels, according to the data. The policy rate in the range of 5.25% to 5.5% was unaltered by the US Federal Reserve. It sent a hint that it would still be lowering interest rates by 75 basis points by 2024.

“Today’s Indian markets saw substantial gains. The Sensex was able to go over the critical 50-EMA (Exponential Moving Average) level of 72,200 zone and break above the 72,500 level at lunchtime after making a low in the 71,675 zone in the previous session. More gains are expected as the Sensex increased by 515 points and the mood strengthened with a bullish bias. According to Shiju Koothupalakkal, a technical analyst at Prabhudas Lilladher Pvt Ltd, “the main sectors that moved the index higher today were construction, metals, PSU Banks, media and entertainment, energy, consumer durables, financial services, and pharma.”

Market analysts claim that the Federal Reserve’s March policy was predicted. Although they said that there would be three rate cuts this year, analysts believe the total amount of reduction will not exceed 75 basis points.

notable improvements

On Thursday, every segment of the domestic market saw gains, with Nifty Metal and Nifty PSU Bank seeing the biggest increases at 2.5 percent.
The benchmarks were underperformed by the overall market. The dollar’s value relative to a basket of other currencies, the Dollar Index, fell below 103