Sensex, Nifty hit all-time highs as bulls dominate Dalal Street

Benchmark stock market indices opened Monday’s trading session on a positive note as investors remain hopeful of more policy easing by the US Federal Reserve later this year.
The S&P BSE Sensex climbed to an all-time high of 84,843.72 moments after opening, while the NSE Nifty50 rose to 25,910.35. At around 9:30 am, the Sensex was up 257.38 points at 84,801.69, while the Nifty50 rose to 107.30 points to trade at 25,898.25.
Both benchmark indices reached all-time highs on Friday, fueled by optimism that the US economy is on track for a “soft landing”.
Most of the other broader market indices also opened the trading session on a positive note, indicating that risk appetite among investors has gone up after the US central bank’s recent rate cut.
Nifty Pharma and Nifty Auto led the sectoral gains, while Nifty IT traded in the red due to sectoral weakness.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, “The charging bull got a shot of steroids from the Fed when it cut interest rates by 50bps on September 18th. More than the rate cut, it was the Fed chief’s optimistic commentary that lifted the markets sharply.”
“The signal from the Fed is that inflation is under control and the economy is unlikely to tip into recession. This message is positive for equities, positive for emerging markets and positive for India,” he added.
Meanwhile, Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, “Key US data during the week like the GDP growth numbers for the second quarter and Federal Reserve Chair Jerome Powell’s Speech this Thursday, followed by US PCE inflation on Friday will be in focus. On the technical front, the Nifty may see aggressive targets between 26300-26500 zone with support at 24301.”