Bulls surge ahead: Sensex crosses historic 84,000 mark; Nifty at all-time high. What's causing the rally?

Mahindra & Mahindra, JSW Steel, Maruti, Tata Steel, Larsen & Toubro, ICICI Bank, Power Grid, Nestle, Bharti Airtel and Adani Ports led the gains

BSE Sensex bull Representational image | PTI

The BSE Sensex continued the bull run, breaching the historic 84,000 mark on Friday, while Nifty hit a new record, in the wake of the US Federal Reserve cutting its benchmark interest rate after more than four years and the positive momentum in global markets.

The 30-share BSE Sensex jumped over 1,000 points during the day. The NSE Nifty jumped by 271 points to hit a new all-time peak of 25,686.90.

Mahindra & Mahindra, JSW Steel, Maruti, Tata Steel, Larsen & Toubro, ICICI Bank, Power Grid, Nestle, Bharti Airtel and Adani Ports led the gains. Tata Consultancy Services emerged as the only laggard.

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Sentiments seem to have improved in the mid- and small-cap stocks as well after the profit booking on Thursday.


The reasons for the positive sentiments include increased buying in the US, Europe, and Asia markets, apart from the Fed rate cut. In Asian markets, Seoul, Tokyo, and Hong Kong were trading in the green.

The US markets ended higher on Thursday with the Nasdaq jumping 2.51 per cent, and the S&P 500 gaining 1.70.

The positive sentiments are also aided by concerns over a slowdown in US economy easing, as there are indications of strong job growth in September.

READ MORE: How will US Fed rate cut affect Dalal Street on September 19? Here's what to expect when Sensex, Nifty open today

The possible technical reasons for the markets hitting new highs include the formation of higher high-lows after the Fed rate cut announcement.

Sensex had jumped 236.57 points or 0.29 per cent to settle at a lifetime high of 83,184.80 on Thursday. The Nifty gained 38.25 points or 0.15 per cent to 25,415.80.

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