Sensex jumps 539 points, Nifty closes above 22,000 as US Fed signals three rate cuts this year

Markets surged strongly and gained nearly a per cent, tracking favourable global cues, Ajit Mishra, SVP – Technical Research, Religare Broking Ltd said.

“Nifty tested the immediate hurdle of short-term moving average i.e.20 EMA today but it couldn’t surpass it. We may see some consolidation now and need sustainability above 22,200 to mark any meaningful recovery,” Mishra said.

Global benchmarks were mostly higher on Thursday after US stocks rallied to records following indications from the Federal Reserve that it expects to deliver interest rate cuts later this year and maintained its projections for three interest rate cuts this year, providing room for the regional central banks to begin considering monetary easing, said Deepak Jasani, Head of Retail Research at HDFC Securities.

In the broader market, the BSE midcap gauge climbed 2.36 per cent and the smallcap index jumped 2.01 per cent.

All indices ended in the green, where power advanced 3.06 per cent, realty zoomed 2.96 per cent, industrials (2.81 per cent), capital goods (277 per cent), metal (2.73 per cent), services (1.99 per cent), commodities (1.98 per cent) and consumer discretionary (1.67 per cent).

A total of 2,758 stocks advanced while 1,061 declined and 107 remained unchanged.

Global oil benchmark Brent crude dipped 0.08 per cent to USD 85.88 a barrel.

Foreign institutional investors offloaded equities worth Rs 2,599.19 crore on Wednesday, according to exchange data.

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.