A global rally led by expectations of a rate cut from central banks triggered a late surge in stocks on Thursday that sent the Sensex over the 83,000 mark in intra-day trades and helped the Nifty 50 scale another peak.

The 30-share barometer spurted 1593.03 points or 1.95 per cent to touch a lifetime intra-day peak of 83116.19 in the last hour of trade.

It closed at an all-time high of 82962.71, up 1439.55 points or 1.77 per cent.

On the NSE, the Nifty added 470.45 points or 1.89 per cent to end at a record high of 25388.90.
Earlier, the 50-share gauge reached a peak of 25433.35, marking a rise of 514.9 points or 2 per cent.

The rally was induced by an uptrend in global markets in the anticipation of a quarter percentage point rate cut by the European Central Bank. The markets second-guessed the move correctly and the ECB later cut the policy rate to 3.5 per cent even though it expected inflation to rise in the latter part of 2024. This is the second time that the ECB has cut rates since June.

Next week the US Federal Reserve is expected to begin its easing cycle with at least a 25-basis- points cut. The meetings come amid reports that China is also weighing to bring down interest rates on mortgages.

After the domestic markets were shut for trading, the ECB brought down interest rates as widely expected by a quarter of a percentage point.

``The Nifty rallied in the final hour of the session supported by buying seen in large-caps which outperformed the broader market. This positive up-move was supported by heightened expectations of a 25 basis points rate cut by the US Fed after the inflation data came in on expected lines,” Siddhartha Khemka, head — research, wealth management, Motilal Oswal Financial Services, said.

“Overall, we expect the market to continue its ongoing momentum on the back of healthy buying by FIIs and retail participation at every dip. The key event to watch out on domestic front will be the inflation data,’’ he said. India’s retail inflation came in at 3.65 per cent in August, below the RBI-mandated threshold.

Provisional data showed overseas investors purchasing stocks worth ₹1,755 crore in Thursday’s trade. The net purchases by domestic institutional investors lagged at ₹231 crore.

ECB cut

With inflation subsiding, the European Central Bank cut interest rates again on Thursday to prop up tepid growth with lower borrowing costs for companies and home buyers. The US Federal Reserve likely won’t be far behind in joining the rate-cutting process, reports AP.

The bank’s rate-setting council lowered the deposit rate from 3.75 per cent to 3.5 per cent at a meeting at its headquarters in Frankfurt.

Bank president Christine Lagarde steered clear of any guidance on further cuts.