Stock market today: Nifty above 25,000 for the first time, Sensex at record high

Tata Steel rose 2% after posting a rise in quarterly profit and Coal India gained 2.5%.

Stock market today: Indian shares hit all-time highs at the open today (August) as Nifty breached the 25,000-mark tracking a global rally after the US Federal Reserve hinted at a possible interest rate cut in September. The NSE Nifty 50 rose 0.32% to 25,030.95 points while the BSE Sensex was at 81,949.68. The rally started on Wall Street as the Fed held interest rates steady as expected.

Stock market today: The stock market index on a display screen at the Bombay Stock Exchange (BSE) building in Mumbai. (PTI)

All 13 major sectors logged gains. Small and mid-caps rose about 0.5% each. Individually, Tata Steel rose 2% after posting a rise in quarterly profit and Coal India gained 2.5% after it beat quarterly profit estimates on higher volumes and lower costs.

Infosys, India's No.2 IT company, shed about 0.7% after it got a $4 billion tax bill related to services in some of its overseas branches.

Expert view

Pramod Gubbi, co-founder of Marcellus Investment Managers, said, "It's now almost certain that there will be a rate cut in the U.S. in September, which is very good from an emerging markets perspective, in terms of foreign inflows. For now, it means higher foreign inflows into India which will add to liquidity comfort."

Tarun Singh, MD, Highbrow Securities, said, “With the NSE & BSE hitting a new lifetime high, it signifies that the stock market is performing exceptionally well, indicating strong domestic conditions and investor confidence. However, it primarily boosts market sentiment and doesn't guarantee future performance. Practical impacts may include increased media attention and temporary buying frenzies, but investors should stay cautious and focus on long-term strategies rather than being swayed by short-term market exuberance.”

Gold prices

Gold prices extended gains on Wednesday. Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd said, “Gold is likely poised for gains amid increased geopolitical tensions and potential interest rate cuts hinted by the Federal Reserve.”

Oil prices

Oil prices surged nearly 4% on Wednesday as investors worried about the potential widening of Middle East conflicts after the assassination of Hamas chief in Iran. Prathamesh Mallya said, “Crude oil prices are expected to rise amid heightened geopolitical tensions and a significant drop in US crude stockpiles.”