Benchmark indices reached fresh peaks on Monday as investor mood remained buoyant in the wake of last week’s 50-basis-point rate cut by the US Fed.

The 30-share BSE Sensex rallied 384.30 points to end at an all-time high of 84928.61, while the Nifty advanced 148.10 points to close at 25939.05.

During intra-day trades, both these indices touched new lifetime peaks with the 30-share gauge inching close to the 85000 mark. The Sensex zoomed 436.22 points to hit a high of 84980.53, while the Nifty touched an all-time peak of 25956.

Market circles said that the gains were on account of optimism over the Fed’s interest rate cuts and festival season demand.

According to NSDL data, investment by FPIs in September (in equities) have stood at ₹48,872 crore, the highest in this calendar year.
Provisional data showed their net investments in Monday’s trading stand at ₹404 crore, and traders expect their inflows to emerging markets and inriskier assets to only increase.

Back home, the Reserve Bank of India (RBI) is forecast to lower borrowing costs though experts remain divided on the timing.

“With inflation under control, there is also optimism about a good festival season demand. An indication to this effect was available in the huge rush for iPhone 16,’’ an analyst from a foreign brokerage added.

“The euphoria from the Fed rate cut continued to lift the domestic market. The benign input costs and an expectation of a change in stance by the RBI amid cuts by global banks will provide tailwinds to valuation,” Vinod Nair, head of research, Geojit Financial Services, said.

“Though there is moderation in India PMI data, investors are anticipating that the wave of liquidity from FII may provide stability in the sentiment,” he said.

In Monday’s trading, Mahindra & Mahindra accelerated the most among the Sensex pack as it rose 3.29 per cent. It was followed by State Bank of India, Bharti Airtel, Kotak Mahindra Bank, Hindustan Unilever and UltraTech Cement among others which gained up to 2.55 per cent.

ICICI Bank, on the other hand, dropped the most by 1.25 per cent.

Market circles added that while the recent rally has
led to concerns about pricey valuations, the next trigger points would be the upcoming monetary policy by the RBI and the results season next month.

Globally, investors turned their attention to China and Switzerland as the next destinations for monetary easing after last week’s jumbo rate cut by the US Federal Reserve.

Meanwhile, China’s central bank lowered its 14-day repo rate by 10 basis points, days after disappointing markets by not cutting longer-term rates.