India's Nifty set to hit new high as Fed-driven global rally extends
BENGALURU (Reuters) — India's benchmark Nifty 50 is set to open at a new all-time high on Friday, tracking the global stocks rally on elevated bets of a U.S. rate cut by March 2024 after the Federal Reserve's policy meeting earlier this week.
India's GIFT Nifty was down 0.10% from its overnight close at 21,420.50, as of 8:14 a.m. IST, indicating that the Nifty 50 will open higher than its Thursday closing level of 21,182.70.
Wall Street equities closed higher overnight and are on course for their seventh straight week of gains. European markets rose after the European Central Bank and Bank of England held rates steady. Asian markets opened higher.
Fed Chair Jerome Powell's acknowledgement of the risks of lowering rates too late, on Wednesday, bolstered expectations of a 25 basis point rate cut by March 2024, fuelling a rise across global stock markets.
India's Nifty 50 and Sensex have gained about 1% each so far this week, set for their joint longest weekly winning streak since January 2018.
India's Nifty set for longest weekly winning streak since January 2018 https://tmsnrt.rs/3v06Hu6
The Nifty is set for its seventh straight weekly gain, adding 11.2% over the period, as of last close. The benchmark has been in the overbought territory for 12 sessions in a row, hitting record highs in ten of them.
The Fed's dovish commentary on the future rate trajectory has boosted the ongoing domestic market rally, which has also been aided by strong macroeconomic data, a drop in oil prices, and the return of foreign inflows, according to analysts.
Foreign portfolio investors (FPIs) have purchased shares worth 392.50 billion rupees ($4.71 billion) in December so far, after turning net buyers in November, following a two-month
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