Stock market today: Sensex climbs over 250 points to 83,140.76; Nifty up 74 points to 25,430.60 in early trade

Stock markets on Monday experienced a slight uptick as investors exercised caution in anticipation of the upcoming Fed rate cut announcement later this week.

BSE Sensex opened higher by 94.39 points at 82,985.33 going upto 83,140,76 points in early trade. Meanwhile, the Nifty50 index commenced trading at 25,406.65 points, registering a gain of 50.15 points or 0.2 per cent. It then climbed up to over 25,430 points.

NTPC, Axis Bank, Tata Steel, JSW Steel, Kotak Mahindra Bank, Bajaj Finserv, Larsen & Toubro, and Bajaj Finance emerged as the top performers among the 30 Sensex companies.

Bajaj Housing Finance made its debut on the stock market, capturing the attention of investors. The company's shares opened at Rs 150, representing a substantial premium of 114% over the initial public offering (IPO) price of Rs 70.

Market analysts emphasised that the Fed rate cut decision, scheduled for Wednesday, is the primary focus for investors, who are eagerly awaiting the outcome to determine whether the reduction will be 50 basis points (bps) or 25 bps.

"The Fed rate cut is coming this Wednesday. The main debate is should the Fed go in with a 50 bps cut or stick to a 25 bps cut. Over the last three decades, the Fed has started with a 50 bps cut when the economy was in the throes of a recession. Present economic conditions do not warrant a 50 bps cut," said banking and market expert Ajay Bagga, as quoted by news agency ANI.

Bagga also highlighted the increasing foreign institutional investor (FII) inflows into India and the potential impact of a weaker US Dollar on these investments. He expressed optimism regarding the Indian markets, citing strong macroeconomic factors, global central bank actions, and both domestic and international capital flows as key drivers supporting the market's performance.

Across the broad market indices on the National Stock Exchange, all major indices recorded gains at the opening bell. Among the sectoral indices, Nifty Realty emerged as the top performer, surging 0.97 per cent, while Nifty FMCG was the sole index to open lower. Within the Nifty 50 list, 39 stocks opened higher, and 11 stocks declined at the time of reporting.

Bagga drew parallels between the current global market behavior and the Roaring 1920s, a period characterized by significant economic growth and excesses following the conclusion of World War I and the Spanish Flu pandemic. He cautioned, "We are dancing to the music," while acknowledging that the Roaring 20s ultimately culminated in the Great Depression of 1929. Bagga expressed hope for an additional five years of growth, similar to the 1920s.

In the Asian markets, the opening session was relatively flat. Taiwan's market experienced a minor decline of 0.04 per cent, while Hong Kong's Hang Seng index fell by 0.45 per cent. The markets in Japan and South Korea remained closed due to a holiday.