Market At Fresh Record High; Nifty Crosses Over 21,300, Sensex Shy Of 71,000

India's key stock market indices soared to record highs on Thursday, with the Sensex surging by 450 points and the Nifty breaking above the 21,300 mark in early trade. The bullish trend is fueled by a combination of global factors, including a dovish stance from the Federal Reserve, lower US bond yields, and favourable domestic indicators such as an upgraded GDP forecast and plummeting global oil prices.

Markets worldwide are riding the wave of optimism tracking overnight movements of the Wall Street. The Dow Jones Industrial Average in the US reached consecutive record closing highs, propelled by the Federal Reserve's dovish pivot hinting at potential rate cuts in 2024.

The global rally is also evidenced by the Indian rupee trading flat at 83.32 against the US dollar, reflecting stability amid the currency market fluctuations. The Dollar Index, which gauges the greenback's performance against a basket of major world currencies, witnessed a marginal decline to the 101.91 level.

Small Cap and Midcap indices are rallying along with benchmark indices, consistently outperforming the markets in recent sessions. Indian equity indices, having opened at all-time highs, are extending gains on the back of heightened expectations of a US rate cut by March 2024, following the Federal Reserve's recent policy meeting.

Among the Nifty stocks, Infosys, JSW Steel, Tata Steel, HCL Tech, and Sun Pharma opened with gains, showcasing the breadth of the market rally. However, Axis Bank, Nestle, Bharti Airtel, and Power Grid opened with cuts. Notable Small Cap performers included Texmaco Rail & Engineering, which opened over 10% higher after securing orders worth Rs 1,374 crore, and Genus Power Infrastructures, whose shares opened with a 5% upper circuit following orders worth Rs 1,026 crore.

Sector-wise, the Nifty Metal surged 1.6%, and Nifty IT rose 0.9%, led by companies like L&T Technology Services and Infosys. Other sectors, including Nifty Bank, Auto, Media, Pharma, Consumer Durables, and Oil and Gas, also opened higher, contributing to the overall positive market sentiment.

On the global front, Asian shares reached a four-month peak on Friday, propelled by sharp declines in the dollar and US yields that extended the Fed-fueled rally. Japan's Nikkei surged 1.2%, aiming for a weekly gain of 2.5%. Chinese blue chips rebounded, rising 0.8% to distance themselves from a five-year low, while Hong Kong's Hang Seng index surged by an impressive 3.0%.

However, concerns loom over central banks in Europe, which may resist the global pivot towards rate cuts. Despite this, the buoyancy in global markets remains evident, with the Dow Jones climbing to a fresh all-time high and the S&P 500 and Nasdaq making new peaks in 2023.