After the Federal Reserve cut interest rates, the stock market hit an all-time high today, September 19, for the second day in a row. Sensex touched the level of 83,684 and Nifty touched the level of 25,587 during the trading. Energy, IT and auto shares are more bullish today.
The Federal Reserve cut interest rates more than expected The Federal Reserve has cut interest rates for the first time in four years. It was expected that the Federal Reserve would cut interest rates by 25 basis points, but it announced a 50 basis point cut in interest rates, more than expected. This has supported the market.
World Market Update…
- The Asian market is seeing a boom today. Japan's Nikkei is up 2.49% and China's Shanghai Composite is up 0.49%. While the Hang Seng of Hong Kong is also 1.27%.
- On September 18, the Dow Jones of the American market closed down 0.25% at the level of 41,503. While the Nasdaq closed down 0.31% at 17,573. The S&P 500 fell 0.29%.
- According to NSE data, foreign investors (FIIs) on September 18 invested Rs. 1,153.69 crore worth of shares were bought. During this period Domestic Investors (DII) also invested Rs. 152.31 crore shares were bought.
Today is the last day of 3 IPOs Today is the third day of bidding for the IPO of Arcade Developers Ltd and Northern Arch Capital Ltd. The shares of the three companies will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on September 24.
Policy rate is a powerful tool to fight inflation
Any central bank has a powerful tool to fight inflation in the form of policy rate. When inflation is too high, the central bank tries to reduce the flow of money into the economy by raising policy rates.
If the policy rate remains high, the loans that banks get from the central bank will become expensive. In turn, banks make loans more expensive for their customers. This reduces the flow of money in the economy. If the flow of money decreases, demand decreases and inflation decreases.
Similarly, when the economy goes through a bad phase, the recovery needs to increase the flow of money. In such a situation, the central bank reduces the policy rate. Due to this, the loans from the central bank become cheaper for the banks and the customers also get loans at cheaper rates. Read full news
The market made an all-time high yesterday Yesterday i.e. September 18 Nifty made new all-time highs of 83,326 and 25,482. However, the market later declined and the Sensex closed down 131 points at 82,948. At the same time, the Nifty also fell by 41 points to close at 25,377.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
