Sensex jumps nearly 237 points to all-time high after US rate cut

Mumbai: Benchmark equity indices Sensex and Nifty climbed to fresh record high levels on Thursday in line with firm global trends after the US Federal Reserve announced the first cut in policy rate in more than four years.

The 30-share BSE Sensex climbed 236.57 points or 0.29 per cent to settle at a all-time high of 83,184.80. During the day, it jumped 825.38 points or 0.99 per cent to scale a new all-time intra-day high of 83,773.61 but pared some of the gains at close.

The NSE Nifty gained 38.25 points or 0.15 per cent to 25,415.80. During the day, it surged 234.4 points or 0.92 per cent to hit a fresh intra-day record peak of 25,611.95.

From the 30 Sensex firms, NTPC, Nestle, Titan, Kotak Mahindra Bank, Maruti, Hindustan Unilever, Bharti Airtel and HDFC Bank were the biggest gainers.

HCL Technologies, Tata Consultancy Services, Adani Ports, Larsen & Toubro, JSW Steel, State Bank of India, Tech Mahindra and Bajaj Finance were among the laggards from the pack.

The BSE smallcap gauge declined 1.06 per cent and midcap index dipped 0.53 per cent.

Among the indices, consumer durables climbed (0.64 per cent). Realty (0.47 per cent), bankex (0.46 per cent), consumer discretionary (0.34 per cent) and auto (0.32 per cent) were among the gainers.

Telecommunication tumbled 3.89 per cent, oil & gas (1.81 per cent), industrials (1.56 per cent), services (1.22 per cent), teck (0.60 per cent) and IT (0.48 per cent).

“The benchmark indices concluded with a minor gain after hitting record highs post the US Fed’s more than expected interest rates cut of 50 bps and hinted for further reduction. The substantial rate cut sparked concerns over global slowdown, resulting in profit-booking in mid & small cap trading at premium valuation,” said Vinod Nair, Head of Research, Geojit Financial Services.

The rupee strengthened by 11 paise to hit its two-month high level of 83.65 against the US dollar on Thursday after the US Federal Reserve cut the benchmark interest rate by 0.50 per cent, boosting investors’ sentiment.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,153.69 crore on Wednesday, according to exchange data.

Global oil benchmark Brent crude jumped 1.21 per cent to USD 74.54 a barrel.