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Sensex surges 1,000 points, Nifty rises; investors add Rs 5 lakh crore
Benchmark stock market indices witnessed a sudden jump in the afternoon session, adding Rs 5 lakh crore for investors on the Dalal Street.
The S&P BSE Sensex added1048.49 points to 82,571.65, while the NSE Nifty50 gained 343.65 points to 25,262.10 as of 2:45 PM.
The markets reflected global gains as anticipation of higher foreign investments in domestic stocks rose after US inflation data boosted expectations of a 25 basis point rate cut by the Federal Reserve.
The market capitalisation of all listed companies on the BSE increased by Rs 5.14 lakh crore, reaching Rs 465.9 lakh crore.
In the US, consumer prices edged up slightly in August, but core inflation remained persistent, which raised the probability of a 25-basis-point rate cut by the Federal Reserve on September 18 to 85%, up from 66%.
Meanwhile, the likelihood of a more significant 50-bps cut fell to 15% from 34%, as reported by CME FedWatch.
IT companies, which earn a significant portion of their revenue from the US, saw their shares rise by 1%. Additionally, the Nifty Bank, Auto, Financial Services, Healthcare, and Oil & Gas sectors all experienced gains of over 1%.
Dr VK Vijayakumar, Geojit Financial Services said that the latest US inflation numbers are mildly positive for markets.
