GG News Bureau
New Delhi, 19th June. Indian equities surged on Wednesday, tracking global markets higher, as investor sentiment was buoyed by record highs on Wall Street and expectations of a potential rate cut by the Federal Reserve following soft U.S. retail sales data.
The NSE Nifty 50 climbed 0.31% to 23,629.85, while the S&P BSE Sensex also rose by 0.31% to reach 77,543.22, as of 9:15 a.m. IST. Twelve out of thirteen major sectors recorded gains, with forty-six Nifty 50 companies advancing. Small- and mid-cap stocks also saw significant gains, rising to new all-time highs by 0.5% and 0.35%, respectively.
Overnight, Wall Street closed higher with the S&P 500 and Nasdaq Composite hitting new record highs, driven by weaker-than-expected U.S. retail sales data which suggested easing inflation pressures. This data fueled expectations of an earlier-than-anticipated rate cut by the Federal Reserve, now seen with a 61.1% probability for September according to the CME FedWatch Tool, up from 56.7%.
Analysts pointed out that a potential rate cut could attract foreign investments into emerging markets like India, bolstering domestic equities further. Asian markets mirrored the positive sentiment, with the MSCI Asia ex-Japan index rising 0.9% as U.S. tech stocks led a broad-based rally.
The optimism in global markets and the prospect of easing monetary policy in the U.S. have provided strong tailwinds to Indian stocks, positioning them favorably amidst heightened investor confidence in the broader economic outlook.
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