FX.co ★ Sensex, Nifty End Notably Higher On Soft US Data

Indian equities surged significantly on Thursday, driven by optimism from Wall Street, where all three major indexes reached record highs overnight. This bullish sentiment was fueled by the belief that inflation is stabilizing and the anticipation of two interest rate cuts by the U.S. Federal Reserve in 2024.

A decline in the dollar index and U.S. bond yields bolstered market sentiment as the moderation in U.S. inflation and tepid retail sales figures put Fed rate cuts back in the spotlight.

Current market expectations suggest a policy easing to begin in September this year, followed by an additional rate cut before the end of 2024.

The benchmark S&P BSE Sensex surged 676.69 points, or 0.93 percent, closing at 73,663.72. Similarly, the broader NSE Nifty index climbed 203.30 points, or 0.92 percent, to end at 22,403.85.

In corporate developments, Mahindra & Mahindra saw a 4 percent increase in its stock value following an enthusiastic reception for its newly launched compact SUV, the XUV 3XO.

Tata Consumer Products rose 2.8 percent after announcing the record date for dividend distribution.

Bharti Airtel gained 2.6 percent after CEO Gopal Vittal highlighted the necessity for 'substantial tariff adjustments' across the industry.

The IT sector experienced widespread gains, with Tech Mahindra and LTIMindTree each advancing over 2 percent.

Conversely, notable decliners included BPCL, Power Grid Corporation, Tata Motors, SBI, and Maruti Suzuki India, which fell between 1 and 2 percent.