Sensex logs all time high of 40,329 post US Fed's interest rate cut

Agency
Thursday, 31 October 2019

The Sensex peaked at 40,329 post slashing of the interest rates by the US Federal Reserve for the third time this year.

MUMBAI: Sensex, the benchmark equity index, surpassed its previous all-time high during the early trade on Thursday.

The Sensex peaked at 40,329 post slashing of the interest rates by the US Federal Reserve for the third time this year.

This  comes after the Indian government took several steps to comb at a sharp slowdown in the Indian market. 

The BJP-led government, among other sector specific measures, reduced the corporate tax which helped several companies report better than expected results for the second quarter ending September.

Besides, global cues have also been favourable for the past few weeks. Global markets are bullish on US-China trade talks and the Brexit issue.

The Federal Reserve on Wednesday cut interest rates in a move to ensure the US economy endures a global trade war without going into a recession. 

However, it has signaled its rate-cut cycle might be at a pause.

The Sensex had plunged after it peaked on July 4 in anticipation of a corporate friendly Union Budget.

However, contrary to expectation, Finance Minister Niramala Sitharaman introduced unpopular taxes like cess on Foreign Portfolio Investment, which caused massive outflow of foreign funds and sharp decline in stock market.

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