Sensex, Nifty hit record highs: Five factors behind the market rally today

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The Indian market closed at a record high today and witnessed an all-round rally. The Sensex closed at 62,272, up 762.10 points or 1.24%. During the day, the index hit an all-time high of 62,412.33. The Nifty closed at 18,484, up 216.85 points or 1.19%. The 50-stock index hit a record high of 18,529 during the session.

Sensex has gained 6.90% or 4018 points since the beginning of this year and has gained 6.74% or 3931 points in one year. Nifty has gained 6.14% or 1069 points in one year and 6.51% or 1130 points in 2022. The market cap of BSE listed firms touched an all-time high of Rs 283.69 lakh crore as investor wealth increased by Rs 2.46 lakh crore in today’s session.

Here’s a look at the factors that led the index to hit record highs today.

Fed rate hike slows

The latest minutes of a Federal Reserve meeting indicated that most policymakers see a slower pace of interest rate hikes, even if they are unsure how high the benchmark rate will rise.

“Domestic indices saw solid gains on broad-based buying as investors digested the minutes of the latest FOMC meeting, which indicated that the rate hike cycle may slow down,” said Vinod Nair, Head of Research, Geojit Financial Services.

Asian market

Asian markets edged higher on expectations of a slower rate hike by the Federal Reserve. Japan’s benchmark Nikkei 225 closed up 0.95% at 28,383 after a national holiday on Wednesday. Australia’s S&P/ASX 200 rose 0.14% to 7,241. South Korea’s Kospi rose 0.96% to 2,441. Hong Kong’s Hang Seng rose 0.78% to 17,660, while the Shanghai Composite fell 0.25% to 3,089.

improvement in crude oil prices

International benchmark Brent crude fell 16 cents to $85.25 a barrel. On the other hand, benchmark US crude fell 11 cents to $77.83 a barrel.

“Effect in crude oil prices and fall in dollar index added to the optimism,” said Nair of Geojit Financial Services. Talks of a possible price cap on Russian oil and increase in US inventories weighed on crude oil prices “

rupee rise

The rupee on Thursday appreciated by 30 paise to close at 81.63 against the US dollar due to a weak greenback and rise in domestic equities in the overseas market. Forex traders said the dollar slipped in international trade after weak US data and dovish Fed minutes.

DII boost the spirit

Domestic institutional investors (FIIs) bought shares worth Rs 413.75 crore on Wednesday, boosting market sentiment, according to exchange data. On the other hand, foreign institutional investors (FIIs) sold shares worth Rs 789.86 crore.

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