The Indian equity benchmarks, BSE Sensex and Nifty 50, were trading higher on Tuesday afternoon, having adjusted from the fresh all-time highs they reached earlier in the day.
As of 2:00 PM, the BSE Sensex was up 90 points (0.11%) at 85,018, while the Nifty 50 had gained 27 points (0.1%) to reach 25,965.
In the afternoon session, half of the 30 stocks on the BSE Sensex were in the red, with notable losses from Hindustan Unilever, UltraTech Cement, Kotak Mahindra Bank, Nestle India, and Bajaj Finance. Conversely, the top gainers included Tata Steel (up 4.64%), Power Grid Corp., JSW Steel, Mahindra & Mahindra, and Tech Mahindra.
This trend was reflected on the Nifty 50, where half of the stocks were also down, led by losses in Hindustan Unilever, SBI Life, Grasim Industries, UltraTech Cement, and Nestle India. In contrast, Tata Steel (up 4.60%), Power Grid Corp., Hindalco Industries, ONGC, and JSW Steel were among the top performers.
Sector-wise, the FMCG (down 0.57%) and PSU Bank indices were the biggest laggards, while financial indices like Nifty Bank and Financial Services also traded lower. Among the gainers, the Nifty Metal index saw a strong rise of 2.80%, followed by gains in the Oil & Gas and Auto sectors.
In broader market activity, the BSE MidCap rose by 0.17%, and the BSE SmallCap index increased by 0.09%.
On Monday, both the BSE Sensex and Nifty 50 reached record highs before closing the session at these elevated levels. The BSE Sensex climbed by 384 points (0.45%) to finish at 84,928.61, after hitting a peak of 84,980 earlier. The Nifty 50 also reached an all-time high of 25,956, closing up by 148 points (0.57%) at 25,939.
Asian stocks surged on Tuesday to their highest levels in over two and a half years, bolstered by broad stimulus measures from China, while expectations of further US rate cuts supported a positive risk sentiment and pressured the dollar.
In a highly anticipated press conference, China’s top financial regulators announced several measures, including a 50 basis point cut in bank reserves and reduced mortgage rates aimed at stimulating economic growth. These moves drove Chinese stocks higher, with the blue-chip CSI300 Index rising by 2.4%, and the Shanghai Composite index gaining 2.38%. Hong Kong’s Hang Seng Index surged over 3.2% to reach a four-month high.
This rally propelled MSCI’s broadest index of Asia-Pacific shares outside Japan up by 0.92% to 591.47, marking levels last seen in April 2022. European stock markets were also poised for a strong opening, with Eurostoxx 50 futures and German DAX futures up by 0.5%, while FTSE futures increased by 0.355%.
Despite being lagging behind in the region, Chinese stocks have shown volatility, with the CSI300 index down 4% year-to-date. Japan’s Nikkei rose 0.8%, reaching a near three-week high, while the yen weakened to 144.11 per dollar.
Overnight, US stocks closed slightly higher as traders digested the Federal Reserve’s recent significant move, with officials explaining the rationale behind the 50 basis point cut. Meanwhile, the Reserve Bank of Australia maintained steady interest rates and emphasized the need for a tight policy stance, in contrast to the Federal Reserve.
Current market expectations are evenly divided on whether the US central bank will implement another 50 basis point cut or a 25 basis point cut in November, according to the CME FedWatch tool, which indicates pricing for 76 basis points of easing this year. Additionally, the upcoming non-farm payrolls report in the US is scheduled for October 4.
The dollar index, which measures the US currency against six others, stood at 100.95, remaining close to last week’s one-year low of 100.21.
In commodities, oil prices increased, with Brent crude futures up 0.92% at $74.58 a barrel, while US crude futures rose by 1% to $71.14. Oil prices had previously fallen on Monday due to concerns over demand and weak economic data from Europe. Gold prices hit a record high of $2,637.79 as rising tensions in the Middle East drove safe-haven investment flows.