Indian stock market at new heights, wings attached to Fed rate cut and strong economy

Since the announcement of an interest rate cut by the US Federal Bank and stability in the strong growth rate of the economy, domestic and foreign investors started seeing profit with safety in the Indian market. Because of these reasons, the Sensex reached a new high of 84544.31 points on Friday, which was 1359 points more than the previous working day. The Sensex has closed above the 84,000-point mark for the first time. The Nifty is above 25,790 with a gain of 375.15 points.

From banking to FMCG, auto, pharma, and capital goods, almost all sectors were bullish on Friday, while 250 stocks on BSE were seen at their one-year high record level. The market cap reached Rs 472 lakh crores due to its tremendous increase while investors earned six lakh crores in a day.

Rochak Bakshi, Founder and CEO of True North Financial Services said, "After the Fed interest rate cut, the market is expecting extra cash flow from the foreign institutional investors. The flow, in this expectation, has increased in large caps in recent times and this trend may get stronger. Large caps are expected to perform better in the near future compared with other categories. But almost all the Asian markets, along with the US, had been bullish after the announcement of the Fed rate cut. The US Unemployment rate in September also came down to its lowest level in the last four months, which also encouraged the global market. With low interest rates in the US, investment prospects in dollars are not looking very lucrative to foreign investors. Besides, investors are also being lured by the same 7% growth rate forecasted by global agencies for the Indian economy.