Markets Soar to Record Heights Following Dovish Commentary from US Fed

Market exuberance and fresh highs were observed on Thursday, following the dovish tone from the US Federal Reserve indicating potential rate cuts in 2024. The Sensex closed at 70,514.20, recording a gain of 929.60 points, while the Nifty ended at 21,182.70, up 256.35 points. Increased investor confidence was fueled by a notable decline in US bond yields. The positive market sentiment was further supported by an upgraded GDP forecast for India, easing global oil prices, and the RBI's commitment to curbing inflation. Realty and IT stocks outperformed in the broad-based rally. Rupak De, a Senior Technical Analyst at LKP Securities, highlighted the Nifty's breakout from consolidation, driven by a rise in long positions compared to short trades. The index's comfortable position above crucial moving averages indicates robust sentiment, with potential for further advances toward 21,400 and beyond, according to De. Support is evident at 21,000, where significant Put positions are held.

Key Points:

1. Thursday witnessed market exuberance and record highs as the Sensex surged by 929.60 points to close at 70,514.20, while the Nifty gained 256.35 points, ending at 21,182.70.

2. The optimistic market mood followed the dovish stance of the US Federal Reserve, hinting at possible rate cuts in 2024. This was accompanied by a significant drop in US bond yields, contributing to increased investor confidence.

3. Factors supporting the positive sentiment include an upgraded GDP forecast for India, a decline in global oil prices, and the Reserve Bank of India's commitment to controlling inflation.

4. In the widespread rally, realty and IT stocks outperformed, reflecting the overall buoyancy in the market.

5. Senior Technical Analyst Rupak De noted the Nifty's breakout from consolidation, driven by an increase in long positions. The index's position above crucial moving averages signals strong sentiment, with potential for further gains towards 21,400 and beyond, while support is identified at 21,000.

(With Agency Inputs)