Indian markets achieved new record highs on Thursday, fueled by comments from several Federal Reserve officials suggesting the possibility of another substantial interest rate cut. According to the CME FedWatch tool, the probability of a significant 50-basis-point cut in November remains above 60%.
Oil prices plummeted, further improving market sentiment. Reports indicated that Saudi Arabia, the leading member of OPEC, is ready to increase oil production to recapture market share.
The BSE Sensex, India's benchmark 30-share index, surged by 666.25 points, or 0.78%, to close at 85,836.12. The broader NSE Nifty index climbed 211.90 points, or 0.81%, to finish at 26,216.05.
Notable gainers in the Nifty pack included Bajaj FinServ, Shriram Finance, Tata Motors, Grasim, and Maruti Suzuki India, each rallying by 3-4%. Meanwhile, ONGC and Cipla each saw a decline of over 1%.
Vedanta rose by 4.8% after announcing plans to consider a fourth interim dividend. PB Fintech saw a 1.2% increase amidst volatile trading as its parent company, Policybazaar, explores a strategic entry into the healthcare market.
On the global front, both Asian and European markets experienced significant gains. This was partly due to U.S. memory chip maker Micron's forecast of higher-than-expected first-quarter revenue and China's politburo's commitment to enhancing fiscal support for the struggling property market.
The U.S. dollar weakened slightly, and gold remained near its record levels. Oil prices continued to drop, decreasing by about 2% in European trading on expectations of increased supply from Libya and Saudi Arabia.
