Sensex surges 500 points, Nifty inches above 24,950

Stock market news: Benchmark indices opened on a positive note at the start of the session on Monday, eventually tracking the gains in Asian peers after dovish comments by Federal Reserve Chairman Jerome Powell solidified hopes of an interest rate cut sooner than later.

The 50-share NSE Nifty index opened 82.95 points higher at 24906.10, while the 30-share S&P BSE Sensex opened over 300 points higher at 81,388.26

While Wipro, ONGC, Tech Mahindra, Hindalco, LTI Mindtree, and Tata Consultancy Services led gains in the Nifty 50 index, Apollo Hospital, Grasim, HDFC Life, ITC, BPCL are amon the top losers.

Earlier in the day, the GIFT Nifty indicated a positive start for the Nifty 50 index after a 3 per cent up move in the last seven sessions, marking the longest rally this year. This comes amid increased hopes of a US rate cut in September and continued robust domestic inflows.

This immediately fed speculation following Friday's address by Powell in the high-profile Jackson Hole Economic Symposium when he said, "the time has come for policy to adjust". This could well keep driving flows in the equity markets into emerging markets like India, working towards a sustained rally in domestic equities.

Stocks in news

• KEC International gained up after the company secured three orders totaling Rs 1,079 crore.
• Dr Reddy's: Its Srikakulam plant was issued a US FDA Form 483 with three observations.
• Religare Enterprises: The Enforcement Directorate conducted searches at the premises of its officials.
• Lemon Tree Hotels: It signed a license agreement for a 175-room property in Surat.

Friday also witnessed Foreign Institutional Investors as net buyers, with shares worth about Rs 1,944 crore, and Domestic Institutional Investors at Rs 2,896 crore, adding on to the market momentum.