Domestic markets are likely to surge on Thursday, thanks to the US Federal Chief’s categorical statement that there will be no more hikes in interest rates. Analysts expect the consolidation phase to continue and sector rotation.

US markets were on fire, with the Dow Jones Industrial Average hitting an all-time high. Gift Nifty at 21,216 against the spot close of 21,033. Most Asian stocks are also on the up in early deals on Thursday, except Japan markets.

Fed chair Powell signalled that the central bank was done with rate hikes and will start cutting rates next year. Importantly, the dot plot was revised to signal an easing of 75 bps (rates at 4.5-4.75%) in 2024 and 3.5-3.75 in 2025. This took treasury yields sharply lower.

Ajit Mishra, SVP, Technical Research, Religare Broking, said indications favour further consolidation in the index, but the bias would remain positive. “Participants should maintain their focus on stock selection and overnight risk management. We feel the performance of the US markets would play a critical role in setting the next leg of the directional move so keep a close eye on them for cues,” he added.

Nitin Rao, CEO, InCred Wealth, said: While the Sensex reaching 70,000 is a significant milestone, it’s important to remember that investing is a long-term journey. “Current valuations are reasonable, supported by strong economic fundamentals and a positive market sentiment. This suggests that markets are likely to continue trending upward alongside economic growth,” he said.

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