Stock market hits all-time high on September 20 amid positive economic signals
By Ajay Joseph | First Published Sep 20, 2024, 2:02 PM ISTThe catalyst for this remarkable rise can be attributed to the US Federal Reserve's recent decision to cut interest rates. This move has positively influenced both the Indian stock market and global markets, leading to record highs for the Sensex and Nifty for two consecutive days.
The Indian stock market soared to unprecedented heights on Friday (September 20) with the Sensex reaching an all-time high of 84,181 points and the Nifty hitting 25,716 points. As of midday trading, the Sensex was up by 1,200 points and the Nifty by 365 points, driven by significant buying activity in metal stocks and a notable surge in shares from the defense sector.
Key reasons for market surge -
Latest Videos
1. Federal Reserve's interest rate cut:
The catalyst for this remarkable rise can be attributed to the US Federal Reserve's recent decision to cut interest rates. This move has positively influenced both the Indian stock market and global markets, leading to record highs for the Sensex and Nifty for two consecutive days.
Financial relief for central government employees: Dearness Allowance expected to increase soon
2. Expected increase in foreign investment:
The cut in interest rates has sent encouraging signals to foreign investors, fostering optimism about increased investment in India's emerging market. This influx of foreign capital is a key driver behind the current market boom.
3. Signals of further rate cuts by the fed:
Following a substantial 50 basis point cut in interest rates, the Federal Reserve has hinted at the possibility of additional cuts in the future. While this has generally boosted global market sentiment, it has also sparked concerns regarding a potential global recession.
4. Expectations for the Reserve Bank of India (RBI):
Investors are also hopeful that the Reserve Bank of India will follow suit in its upcoming monetary policy review in October. A potential interest rate cut from the RBI could further stimulate economic growth, adding to the positive momentum in the stock market.
Petrol, Diesel FRESH prices announced: Check September 20 rates in major cities
The market's bullish trend translated into substantial financial gains for investors, who collectively earned Rs 4 lakh crore within just one hour of trading. By 10:30 AM, the total market capitalization of the Bombay Stock Exchange (BSE) surged to Rs 469 lakh crore, with 28 out of 30 Sensex stocks witnessing gains, and 44 out of 50 Nifty stocks also moving upwards.
subscribe to Asianet Newsable WhatsApp channel by clicking here. For more reliable and latest news
subscribe to Asianet Newsable Telegram channel by clicking here.