The Nifty 50 and Sensex gave up earlier gains after reaching record intraday highs on Tuesday, influenced by a rise in Asian stocks following China’s monetary easing aimed at countering economic slowdown and the Federal Reserve’s interest rate cut.
Markets have been on an upward trajectory since the Federal Reserve announced its first interest rate cut of 50 basis points since 2020, aiming for a soft landing for the U.S. economy.
Divam Sharma, CEO and Co-Founder of Green Portfolio, commented on the market trends: “We’re witnessing rallies in other Asian markets, including Shanghai and Hong Kong, largely driven by U.S. rate cuts. On Friday, India saw ₹14,000 crores in foreign institutional investor (FII) inflows, reinforcing its status as a favoured emerging market,” he told CNBC-TV18.
The Sensex closed 15 points lower at 84,914, while the Nifty 50 edged up 1 point to finish at 25,940.
The heavyweight Midcap index gained 138.4 points to reach 60,851. Meanwhile, the Nifty Bank fell 137 points to close at 53,969 points.
Metal stocks surged in today’s session after a slew of measures announced by China over the last few days to boost its economy. The sub-index was the biggest gainer on the benchmark, closing up 3% at 9,735.40.
The People’s Bank of China (PBOC), the Chinese central bank, announced on Tuesday that it will cut the reserve requirement ratio (RRR) for banks by 50 basis points going forward, although it did not specify a timeline as to when will this cut take place.
Reference Link: https://www.cnbctv18.com/market/nifty-50-sensex-pares-gains-after-touching-record-highs-nifty-hits-26000-mark-19481236.htm/amp