Nifty Sensex open at record highs after US Federal Reserve keeps interest rates unchanged and indicates 3 rate cuts
The benchmark Nifty 50 index and Sensex opened at a record high following a dovish US Federal Reserve meeting outcome where interest rates were kept unchanged in the target range of 5.25-5.5%.
The Nifty-50 index opened at record highs of 21,110.40 significantly higher than previous close of 20,926.35 and scaled fresh highs of 21,120.55 surpassing the previous highs of 21,037.90.
The Sensex also opened at 70,146.09 muh higher than previous close of 69,584.60. It scaled highs of 70,306.39.
The US Federal Reserve not only have kept rate unchanged but also indicated towards a three quarter-point cuts to their benchmark interest rate during the next year which led to the Dow closing above 37,000 for the first time as the Fed turned dovish, while the Nasdaq and the S&P 500 reached their best closing levels in almost two years.
The interest rate hike cycle coming to an end and at least three rate cuts expected in 2024 remain key positives for the market outlook.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said that “This Thursday morning brings three positive developments: WTI Oil prices touching a five-month low at $69 a barrel, FIIs purchasing shares worth Rupees 4711 crores in yesterday’s trade, and the 10-year US Treasury note yield falling below 4.1%, the lowest since early August”.
The Federal Reserve’s decision to keep interest rates steady at 5.25%-5.5% for the third time aligns with market expectations, with the FOMC anticipating a slowdown in inflation to 2.4% in 2024, said Tapse. Market sentiment increasingly reflects expectations of a future interest rate cut, he added
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Published: 14 Dec 2023, 09:43 AM IST
