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Stock market today: Indian equity benchmark indices, BSE Sensex and Nifty50, extended their winning streak to a seventh consecutive session on Friday, marking their longest rally in 2024. However, the gains were more modest as investors exercised caution ahead of Federal Reserve Chair Jerome Powell’s speech, which is anticipated to provide insights into potential U.S.interest rate reductions.
The NSE Nifty 50 index edged up 0.05% to close at 24,823.15, while the S&P BSE Sensex added 0.04% to reach 81,086.21. Over the past seven sessions, both indices have risen by approximately 3%, driven by increasing expectations of a U.S. rate cut and sustained domestic inflows.
However, the majority of these gains were realized on the second day as concerns about a U.S. recession subsided. In the last two sessions, the daily gains have moderated, and the Nifty’s trading range has narrowed to less than 100 points.
Aishvarya Dadheech, chief investment officer at Mumbai-based Fident Asset Management, told Reuters that while the market’s outlook remains optimistic, “caution prevailed on the session as investors contemplated if the Fed is behind the curve or ahead in terms of rate easing.”
Global markets were mixed, with Asian markets trading flat and European markets inching higher ahead of Powell’s speech, which is scheduled after Indian market hours. Although a U.S. rate cut in September is widely anticipated, the probability of a 50-basis-point reduction has been diminishing, according to the CME’s FedWatch tool. Dadheech suggested that if Powell adopts a dovish tone, it could redirect foreign inflows to India and potentially trigger a rally to record highs.
On the domestic front, the U.S. rate-sensitive IT index declined by 1%, recording the smallest gains over the week. TVS Motors and Bajaj Auto rose 2.24% and 4.97%, respectively, boosting the auto sector by 1.12%, following J.P.Morgan’s endorsement of them as its top two picks in the sector. Conversely, Reliance Group companies, including Reliance Infrastructure, Reliance Home Finance, and Reliance Power, experienced losses ranging from 5% to 10% after Chairman Anil Ambani and 24 others were banned from the securities markets for five years due to the diversion of funds.
The NSE Nifty 50 index edged up 0.05% to close at 24,823.15, while the S&P BSE Sensex added 0.04% to reach 81,086.21. Over the past seven sessions, both indices have risen by approximately 3%, driven by increasing expectations of a U.S. rate cut and sustained domestic inflows.
However, the majority of these gains were realized on the second day as concerns about a U.S. recession subsided. In the last two sessions, the daily gains have moderated, and the Nifty’s trading range has narrowed to less than 100 points.
Aishvarya Dadheech, chief investment officer at Mumbai-based Fident Asset Management, told Reuters that while the market’s outlook remains optimistic, “caution prevailed on the session as investors contemplated if the Fed is behind the curve or ahead in terms of rate easing.”
Global markets were mixed, with Asian markets trading flat and European markets inching higher ahead of Powell’s speech, which is scheduled after Indian market hours. Although a U.S. rate cut in September is widely anticipated, the probability of a 50-basis-point reduction has been diminishing, according to the CME’s FedWatch tool. Dadheech suggested that if Powell adopts a dovish tone, it could redirect foreign inflows to India and potentially trigger a rally to record highs.
On the domestic front, the U.S. rate-sensitive IT index declined by 1%, recording the smallest gains over the week. TVS Motors and Bajaj Auto rose 2.24% and 4.97%, respectively, boosting the auto sector by 1.12%, following J.P.Morgan’s endorsement of them as its top two picks in the sector. Conversely, Reliance Group companies, including Reliance Infrastructure, Reliance Home Finance, and Reliance Power, experienced losses ranging from 5% to 10% after Chairman Anil Ambani and 24 others were banned from the securities markets for five years due to the diversion of funds.
