Sensex, Nifty hit fresh record closing high levels on rate cut hopes

Benchmark Sensex rose by nearly 91 points to close at a fresh lifetime high while Nifty settled above the 25,400 level for the first time supported by firm global trends ahead of the much-awaited US Fed's decision on interest rates.

Extending its record-setting spree for the second day, the 30-share BSE Sensex climbed 90.88 points or 0.11 per cent to settle at a lifetime high of 83,079.66.

During the day, it rose by 163.63 points or 0.19 per cent to 83,152.41.

The NSE Nifty gained 34.80 points or 0.14 per cent to settle at an all-time peak of 25,418.55.

Among 30 Sensex firms, Bharti Airtel, NTPC, Mahindra & Mahindra, Kotak Mahindra Bank, Titan, Larsen & Toubro, ICICI Bank, Bajaj Finance, Hindustan Unilever and Reliance Industries were the biggest gainers.

Tata Motors, Tata Steel, Adani Ports, JSW Steel, ITC and Asian Paints were the biggest laggards.

In Asian markets, Hong Kong settled with gains while Tokyo ended lower.

Markets in mainland China and South Korea were closed.

"The Indian market exhibited a subtle positive momentum, driven by the anticipation of a rate cut cycle by the US FED.

"Although a 25-bps cut is largely factored in, the market remains attuned to the FED's comments on the health of the economy and the future trajectory of rate cuts," said Vinod Nair, Head of Research, Geojit Financial Services.

Wholesale inflation fell for the second consecutive month to 1.31 per cent in August due to cheaper vegetables, food and fuel, government data released on Tuesday showed.

Foreign institutional investors offloaded equities worth Rs 1,634.98 crore on Monday, according to exchange data.

Global oil benchmark Brent crude dipped 0.25 per cent to $72.52 a barrel.