Nifty, Sensex hit fresh record highs amid foreign investment optimism

Stock market news: Benchmark indices reached record highs on Monday, buoyed by expectations of increased foreign investment following last week’s interest rate cut by the Federal Reserve. This move has ignited a risk-on sentiment among global investors.

At 9:22 am, both the Nifty 50 index and the S&P BSE Sensex climbed approximately 0.3 per cent, achieving all-time highs. The benchmarks have consistently hit new peaks since the Fed reduced rates by 50 basis points on September 18.

VK Vijayakumar, chief investment strategist at Geojit Financial Services, commented, “Bulls got a shot of steroids from the Fed when it cut interest rates. More than the rate cut, it was the Fed's optimistic commentary that's sharply lifting markets.” He noted that the Fed's message indicates that U.S. inflation is under control and a recession is unlikely, which is encouraging for global equities and emerging markets like India.

Out of 13 major sectors, 12 recorded gains, demonstrating broad-based market strength. The small-cap index rose 0.5 per cent, while mid-cap stocks increased by 0.2 per cent, reflecting robust domestic market activity.

Asian markets also opened positively, with the MSCI Asia ex-Japan index trading 0.3 per cent higher, supported by China's recent decision to lower its repo rate to stimulate economic growth.

(With Reuters inputs.)