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Global markets rallied after the US Federal Reserve kept its key interest rate unchanged and signalled that they expect to make three quarter-point cuts to their benchmark interest rate next year.
The 30-share BSE Sensex jumped 955.4 points to hit its all-time peak of 70,540 during the early trade.
The market capitalisation (mcap) of BSE-listed firms hit a record high of Rs 3,54,41,617.18 crore during the early trade. Investors’ wealth climbed by Rs 3,22,385.27 crore from Rs 3,51,19,231.91 crore on Wednesday.
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Power Grid, Asian Paints, Nestle and Hindustan Unilever were among the laggards.
In Asian markets, Seoul, Shanghai and Hong Kong were trading in the positive territory while Tokyo quoted lower.
The US markets ended with significant gains on Wednesday.
The Federal Reserve kept its key interest rate unchanged on Wednesday for a third straight time, a sign that it is likely done raising rates after having imposed the fastest string of increases in four decades to fight a painfully high inflation.
The Fed’s policymakers also signalled that they expect to make three quarter-point cuts to their benchmark interest rate next year.
”The clear dovish message from the Fed yesterday has set the stage for a smart Santa Claus rally in the coming days, and this can even trigger a pre-election rally that can take the markets to a series of new highs,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Foreign Institutional Investors (FIIs) continued to remain buyers as they bought equities worth Rs 4,710.86 crore on Wednesday, according to exchange data.