Nifty poised for record high open on Powell's reassurance, global rally

Stock market news: Benchmark Nifty 50 is gearing up to kick off trading at a new pinnacle on Thursday, riding the wave of optimism sweeping through Asian markets following US Federal Reserve Chair Jerome Powell's commitment to potential rate cuts this year and his dismissal of immediate recession risks.

The GIFT Nifty was seen trading at 22,648 as of 8:25 am, indicating a potential opening above Wednesday's close of 22,474.05 for the Nifty 50.

Markets across Asia surged following Powell's reassuring remarks during his congressional testimony, where he hinted at forthcoming rate adjustments in 2024. He emphasised the Fed's trajectory towards achieving a smooth economic transition and dispelled concerns about an imminent recession.

Both the NSE Nifty and BSE Sensex, rebounded from a sluggish start on Wednesday to notch fresh all-time highs. The Nifty soared to a record peak of 22,497.20, while the Sensex breached the 74,000 mark for the first time.

Both indices have advanced approximately 0.6 per cent since the beginning of the week, positioning them for a fourth consecutive week of gains if current momentum persists.

Analysts attribute the upward trajectory of Indian equities to renewed foreign interest, robust domestic inflows, better-than-expected economic expansion, and consistent corporate earnings growth.

On Wednesday, both foreign and domestic investors demonstrated bullish sentiment in Indian stocks. Foreign institutional investors infused a net sum of Rs 2,767 crore, while domestic institutional investors channeled funds worth Rs 2,150 crore into equities.

Key stocks

• Vedanta: The company announced its exploration of all legal avenues following a Supreme Court ruling regarding its copper smelter plant in Thoothukudi, Tamil Nadu.
• Infosys: In a strategic move, Infosys extended its digital innovation partnership with the ATP Tour until 2026, aimed at fostering artificial intelligence advancements in professional tennis.
• Hindustan Aeronautics: The company inked an amendment to its LCA IOC contract, revising the contract's value from Rs 2,701 crore to Rs 5,078 crore.
• Zomato: Antfin, a Chinese entity, divested a 2.1 per cent stake in Zomato valued at $341.5 million. 

(With Reuters inputs.)