Market retreat from record highs post Fed rate decision

The domestic share market indices traded on a positive note on Thursday, following the U.S. Fed's decision to cut interest rates by 50 basis points after a four-year pause. At close, the Sensex was up 236.57 points or 0.29 percent at 83,184.80, and the Nifty was up 38.25 points or 0.15 percent at 25,415.80.
Despite mixed global cues, Nifty opened at a record high on September 19, driven by gains in banking, FMCG, and realty sectors.However, selling pressure in the broader market led to a partial retracement of gains, with Nifty settling at 25,415.80, up 38.25 points or 0.15 percent, forming a Shooting Star candlestick pattern.
NTPC, Nestle India, Titan Company, Kotak Mahindra Bank, Tata Consumer Products, were the top gainers on the Nifty, while losers included BPCL, Coal India, ONGC, Adani Ports and Shriram Finance.
On the sectoral front, auto, bank, realty, FMCG indices rose 0.5 percent each, while capital goods, IT, pharma, oil & gas, media, metal, telecom down 0.5-3.5 percent.BSE Midcap index down 0.4 percent and Smallcap indices down 1 percent.
Rupee Close:
On 19 Sep'24,the Indian rupee strengthened by 7 paise to hit a two-month high level of 83.68 against the US dollar on Thursday after the US Federal Reserve cut the benchmark interest rate by 0.50 per cent, boosting investors' sentiment.Forex traders reportedly stated massive buying in domestic equities and inflow of foreign funds also supported the local unit.
Trading Guide:
Vinod Nair, Head of Research, Geojit Financial Services reportedly quoted as saying,the benchmark indices concluded with a minor gain after hitting record highs post the US FED's more than expected interest rates cut of 50 bps and hinted for further reduction. The substantial rate cut sparked concerns over global slowdown, resulting in profit booking in mid & small cap trading at premium valuation. Meanwhile, domestic heavyweight sectors like banking and FMCG saw buying interest, driven by foreign inflows and the RBI's monetary easing expected in October.
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(Writer is a Finance Research Analyst, based in Gandhinagar, Gujarat)