Market Wrap: Sensex, Nifty extend gains into second consecutive day; investors earn nearly ₹3 lakh crore in a day

Key equity indices the Sensex and the Nifty ended higher for the second consecutive session on Monday supported by positive global cues amid hopes that the US Federal Reserve may not hike rates in September following a jump in the US unemployment rate in August.

Recent macro data have shown inflation is easing and labour market is cooling in the US. This indicates the US economy is set for a soft landing.

As per sources, CME FedWatch tool showed that markets are pricing in a 93 per cent chance of the Fed holding steady on rates this month, and over a 60 per cent probability of no more hikes this year.

Domestically, economic growth outlook remains strong, giving hopes that the market will continue to see bullish sentiment in the medium term.

As reported by media, after Moody’s Investors Service raised growth forecast for India’s economy for the calendar year 2023 from 5.5 per cent to 6.7 per cent, Morgan Stanley increased its projection for India's growth to 6.4 per cent, up from the previous estimate of 6.2 per cent for the financial year 2023-2024.

Deutsche Bank raised its growth forecast for India by 20 basis points to 6.2 percent for the year while Nomura raised its 2023 GDP growth projection to 6.3 per cent from 5.9 per cent previously.