BENGALURU, Sept 12 (Askume) – Indian shares hit a record high on Thursday as commodity prices rose on expectations that China will cut mortgage rates to boost consumption.
The Nifty 50 index (.NSEI) and the S&P BSE Sensex (.BSESN) rose nearly 2% to record highs during the session .
The Nifty rose 1.89% to close at 25,388.9 points and the Sensex rose 1.77% to close at 82,962.71 points. Both benchmark indices also hit record highs during the session, their highest levels since early June.
They have gained 17% and 15% respectively this year and are among the world’s best performers thanks to policy continuity, a strong macroeconomic outlook and excess liquidity.
The Sensex crossed the 83,000 mark for the first time, while the Nifty hit its 55th all-time high in 2024.
Indian stocks opened up around 0.5% today. However, the benchmark indices hit record highs around 2 pm.
All 13 major industries recorded growth. The metal index (.NIFTYMET) rose nearly 3%, and the energy index (.NIFTYENR) and auto index (.NIFTYAUTO) rose by about 2% each.
According to Bloomberg, China is expected to reduce mortgage rates from September to stimulate consumption. This, along with positive global cues, boosted the market, said Narendra Solanki, head of equity research at Anand Rathi.
“If China reduces mortgage rates, it will increase liquidity in global markets and boost commodities because China is the largest consumer of commodities in the world and in the near future, large economies like the United States and the European Union will also do so,” Solanki said.
US consumer prices rose slightly in August , but underlying inflation showed some stability, according to data released on Wednesday.
According to CME FedWatch, the probability of the Federal Reserve cutting interest rates by 25 basis points on September 18 rose to 85% from 66% the previous day, while the probability of a more substantial rate cut of 50 basis points fell from 34% to 15%.
Some analysts also pointed out that the possibility of foreign investors buying a large number of stocks in various sectors after the European markets opened may be the reason for the rise in the last two hours.
Meanwhile, investors await India’s August consumer inflation data, due later today.
A Askume survey of economists showed inflation could remain below the central bank’s 4% target for a second consecutive month.
(1 USD = 83.9830 Indian Rupees)
