US Fed rate cut hint spurs rally on bourses

Update: 2024-03-23 12:29 IST

Mumbai: Benchmark equity indices Sensex and Nifty closed higher for the third straight session on Friday, following gains in index majors L&T, ITC and Maruti and a record rally in the US markets after the Federal Reserve indicated three rate cuts this year. However, a massive sell-off in IT and tech stocks kept indices under pressure and restricted the rise after Accenture lowered its revenue forecast for the sector for fiscal 2023-24, traders said. After falling in early trade, markets staged a smart recovery.

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The 30-share BSE Sensex climbed 190.75 points or 0.26 per cent to settle at 72,831.94. However, a sharp correction in IT and tech stocks limited the rise. During the day, it jumped 474.43 points or 0.65 per cent to 73,115.62. The NSE Nifty advanced 84.80 points or 0.39 per cent to 22,096.75. On a weekly basis, the BSE benchmark climbed 188.51 points or 0.25 per cent, and the Nifty went up by 73.4 points or 0.33 per cent. “The domestic market swiftly rebounded from an initial downturn and maintained a positive trajectory throughout the day, buoyed by favourable global cues driven by dovish comments from the BoE and buying activity at lower levels in the wake of a recent sell-off. Additionally, the retreat of crude oil prices from recent highs contributed to the positive sentiment. While most sectors experienced gains, the IT remained in the red due to subdued guidance from Accenture, a major global IT player,” said Vinod Nair, head (research), Geojit Financial Services.

“Asian stocks were mixed on Friday and European stocks reacted from record highs but were still on path for a ninth straight week of gains, the longest winning streak since 2012, as investors turned more confident in the economy and looked forward to upcoming interest-rate cuts. A series of central bank meetings during the week indicated that a turn towards looser policy is on track,” said Deepak Jasani, head (retail research), HDFC Securities.

“Markets traded volatilem but managed to end higher, tracking favourable global cues. Participants are taking comfort from the favourable global cues,” said Ajit Mishra, SV-P (technical research), Religare Broking Ltd.

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