New Delhi: In view of the announcement of interest rate cut by the US Federal Bank and the stability in the strong growth rate of the economy, both domestic and foreign investors are finding the Indian market safe and profitable. Due to these reasons, the Sensex reached a new high of 84,544.31 points on Friday, which is 1359 points higher than the previous working day. For the first time, the Sensex closed above 84,000 points. The Nifty reached 25,790 with a gain of 375.15 points.

On Friday, almost all sectors from banking to FMCG, auto, pharma, capital goods witnessed a boom and 250 stocks on BSE were seen at their one-year record level. Due to the tremendous increase, the market cap of BSE reached 472 lakh crores and investors earned six lakh crores in a day.

Rochak Bakshi, Founder and CEO of True North Financial Services, said that after the Fed cut interest rates, the market is expecting additional cash flow from foreign institutional investors. In this expectation, the flow towards large caps has increased in recent times and this trend may get stronger. Large caps are expected to perform better than other categories in the near future.

However, after the announcement of reduction in the Federal rate, almost all Asian markets including America witnessed a rise. The unemployment rate in America in September has reached the lowest level in the last four months, this has also given a boost to the global market. Due to the low interest rate in America, investing in dollars does not seem to be very profitable for foreign investors and investors are also being attracted by the similar seven percent growth rate forecast by global agencies for the Indian economy.

Chief Economist of PHD Chambers, S.P. Sharma believes that currently, areas like Europe and Middle East are in turmoil and many countries are affected by geopolitical turmoil. This turmoil has no effect on India, due to which India's growth rate has been more than seven percent for the last two years and growth is expected to remain at the same rate for the next two-three years. That is also why investors are getting attracted towards the Indian market.