Sensex, Nifty: The US data released overnight indicates that the US labour market is only slowing, not deteriorating. With inflation under control, this means the US is set for a soft landing under a declining interest rate scenario.
Hopes that the kick start of Fed rate easing cycle could trigger risk-on trade and result in foreign flows into India pushed benchmark indices higher in Friday’s trade, with the BSE Sensex breaching the psychological mark of 84,000 and Nifty topping the 25,650 level with ease.
Data released overnight showed the US jobless claims hit the lowest point since May and hinted at a strong labour market, brushing off concerns related to slowdown in the US market. The S&P500 index and Dow Jones Industrial Averages soared up to 1.7 per cent overnight. In Asia, markets in Hong Kong, Japan and Korea also jumped. Domestic stocks moved in tandem with the global rally.
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