Stock market opens with strong gains; Sensex rises 530 points, Nifty reaches 24950
Sensex Opening Bell: At 9:46 am, the BSE Sensex was trading 523 points higher at 81,623. At the same time, Nifty 50 was trading 155 points higher at 24,979. Among Sensex stocks, Tech Mahindra, TCS, Infosys, HCL Tech, HDFC Bank and Axis Bank were the biggest gainers with gains of up to 2%.
On Monday, Indian benchmark equity indices Sensex and Nifty 50 opened with gains. During this period, index-heavyweight financial and IT stocks saw gains. This rise in the market came after US Federal Reserve Chairman Jerome Powell hinted at a cut in interest rates. At 9:46 am, the BSE Sensex was trading 523 points higher at 81,623. At the same time, the Nifty 50 was trading 155 points higher at 24,979.
Speaking at the Jackson Hole Economic Symposium, Powell said, "The time has come" for the Fed to reduce interest rates. "Upside risks to inflation have diminished. We do not see or expect further weakness in labor market conditions," Powell said.
The statement of the Federal Reserve chief has almost ensured that the US central bank will decide to cut interest rates in its next policy meet. If this happens, it would be the first cut in last four years. A cut in interest rates in US can increase investment in emerging markets like India. This is likely to continue the ongoing boom in domestic stock markets.
Among Sensex stocks, Tech Mahindra, TCS, Infosys, HCL Tech, HDFC Bank, and Axis Bank were top gainers and moved up to 2%. ITC, Sun Pharma, Maruti, Adani Ports, UltraTech Cement, and JSW Steel opened with losses. Coming to the sector-wise opening, Nifty IT rose by 1.4 percent. Mphasis, Coforge, and Wipro showed gains. Added to that, Nifty Bank, Financial Services, Metals, Consumer Durables, and Oil & Gas opened with gains. It was a day of decline in the FMCG, Pharma, Realty, and Healthcare sectors. KEC International's shares rose by more than 9% after securing orders worth Rs 1,079 crores.
