FPIs, Fed take markets to new highs

Benchmark indices up over 1.3% as growth and returns draw foreign funds

- Dipti Sharma

Indian markets scored new records on Friday as the country's blistering growth amid global adversities continued to draw dollars seeking a new home, at a time interest rates look set to cool in the world's largest economy.

Driven by a surge in the shares of IT and financial services companies, the Nifty 50 and the BSE Sensex lifted off for a second straight session, touching new highs of 21,492.3 points and 71,605.76 points during the day. The Nifty 50 closed 1.3% higher at 21,456.65, while the BSE Sensex ended 1.4% higher at 71,483.75, the highest close yet for both indices.

The US Federal Reserve's indication of three likely interest rate cuts in 2024 brightened the market mood, aided by broader investor participation, ample liquidity, corporate fundraising activities, higher public capital expenditure and hopes of political stability.