- Wall Street’s key indexes hit record highs amid growing expectations of a September Fed rate cut.
- Indian benchmarks advance as easing inflation boosts auto and financial stocks.
- Healthcare-focused PMS strategies dominate July’s top performers.
U.S. markets extended their record-breaking momentum on Wednesday as softer inflation data reinforced investor confidence in a Federal Reserve rate cut next month.
In India, the Sensex climbed 304 points to finish at 80,565, and the Nifty rose 132 points to 24,619. Gains were broad-based, with auto and financial stocks at the forefront.
Rate-Cut Hopes Power Global Market Rally; Healthcare PMS Funds Outperform in July
The latest rally on Wall Street reflects the market’s heightened sensitivity to macroeconomic data, particularly inflation indicators. Tuesday’s consumer price index release, showing milder-than-expected growth, provided the catalyst for a second consecutive day of gains. This renewed optimism comes ahead of the U.S. producer price index report, which will add another layer to the inflation outlook.
Market watchers are closely monitoring the Federal Reserve’s Jackson Hole symposium scheduled for late August. Investors expect Fed officials to signal a dovish stance, aligning with the data pointing toward easing price pressures. The growing consensus of a September rate cut has become the dominant theme driving equities higher.
In India, optimism mirrored the global rally. Lower inflationary pressures have revived hopes of sustained corporate earnings growth, especially in consumption-driven sectors. Auto majors and leading banks saw notable buying interest, helping the benchmarks maintain their upward trajectory.
Meanwhile, July’s PMS performance rankings highlighted sector-specific strength. Healthcare and lifesciences strategies outperformed, reflecting investor preference for defensives in uncertain market phases. InCred’s Focused Healthcare and Valcreate’s Lifesciences portfolios both posted solid gains, underscoring the sector’s resilience.
Markets are riding a wave of optimism, but with key economic data and central bank signals still ahead, the next moves could test the durability of this rally.
“In the short term, the market is a voting machine, but in the long term, it is a weighing machine.” — Benjamin Graham
