Sensex hits new record high, trades 300 pts higher; Nifty surpasses 25,900

Sensex and Nifty hit record highs on Monday, fueled by expectations of increased foreign inflows following last week’s Federal Reserve rate cut, which has enhanced risk-on sentiment among investors.

Twelve of the 13 major sectors logged gains. The broader, more domestically focussed small- and mid-caps rose 0.5% and 0.2%, respectively.

Highlights of Trade:

Adani Total Gas up 7% on securing global financing
Voda Idea surges 8% on signing mega deal
Nifty tops 25,900 for the 1st time
Sensex opens 250 pts higher to fresh peak

Market View by 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 50bp 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.