Sensex, Nifty surge in early trade amid global markets rally on US Fed rate cut plans

Mumbai, Mar 21 (PTI) Benchmark equity indices Sensex and Nifty jumped in early trade on Thursday in-tandem with a rally in global markets after the US Fed projected three rate cuts this year.

The 30-share BSE Sensex jumped 595.02 points to 72,696.71 in early trade. The NSE Nifty climbed 181.85 points to 22,020.95.

From the Sensex basket, Tata Steel, JSW Steel, IndusInd Bank, Power Grid, Wipro, and NTPC were the biggest gainers.

Maruti and Nestle were the laggards.

In Asian markets, Seoul, Tokyo, and Hong Kong were trading significantly higher while Shanghai quoted lower.

Wall Street ended with remarkable gains on Wednesday.

“The uncertainty regarding the Fed decision is over with the Fed keeping the rates unchanged and refraining from a hawkish message. The Fed chief’s statement that “inflation has eased substantially while the labour market has remained strong” conveys conviction about the soft landing of the US economy and the possibility of probably three rate cuts this year.

“The response from the market was the US indices racing to record highs. This favourable global construct will have its positive impact on Indian markets too,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Global oil benchmark Brent crude climbed 0.61 per cent to USD 86.47 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,599.19 crore on Wednesday, according to exchange data.

“In a market buoyed by record closing on Wall Street and a confident stance from the Fed, Nifty is poised for significant gains, supported by optimistic economic projections,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

The 30-share BSE benchmark rebounded 89.64 points or 0.12 per cent to settle at 72,101.69 on Wednesday. The NSE Nifty climbed 21.65 points or 0.10 per cent to 21,839.10.