FX.co ★ Sensex, Nifty Rally On Dovish Fed Signals

Indian equities made significant gains on Monday, buoyed by comments from Federal Reserve Chair Jerome Powell indicating that the U.S. central bank may initiate interest rate cuts at its forthcoming monetary policy meeting in September.

During his speech at the Jackson Hole Economic Symposium, Powell remarked, "The time has come for policy to adjust," but he also emphasized that "the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks."

In response to Powell's dovish stance, the benchmark S&P/BSE Sensex surged by 611.90 points, or 0.75%, closing at 81,698.11. Simultaneously, the broader NSE Nifty index climbed by 187.45 points, or 0.76%, ending the session at 25,010.60.

Significant gainers within the Nifty pack included Bajaj FinServ, ONGC, NTPC, Hindalco, and HCL Technologies, which all saw increases of 3-4%. Conversely, Adani Ports, Hero MotoCorp, and Apollo Hospitals Enterprise each declined by approximately 1%.

Shares of One97 Communications, parent company of Paytm, tumbled 4.5% following reports that the Securities and Exchange Board of India (SEBI) had issued a show-cause notice to founder Vijay Shekhar Sharma and its board members over alleged "misrepresentation of facts" and "non-compliance with promoter classification norms," based on information from the Reserve Bank of India (RBI).

In related news, companies owned by Anil Ambani continued their downward trend after SEBI imposed a five-year ban on Ambani and 24 associates. As a result, Reliance Power plummeted 5%, while Reliance Home Finance dropped 5.2%.