Mumbai, Dec 14 (IANS): Thanks to the dovish narrative from the US Fed at the Federal Open Market Committee (FOMC) meeting, the Nifty 50 on Thursday scaled to an all-time high level and crossed the 21,100-mark for the first time, said Pranav Haridasan, MD and CEO at Axis Securities.

While the Nifty ended at 21,182.70, up 256.35 points, the Sensex closed at 70,514.20, up 929.60 points.

Several factors contributed to Nifty's rally.

There was a nearly 100 basis point decrease in US 10-year bond yields from their recent peak. The status quo maintained by the RBI, with a positive revision in FY24 GDP from 6.5 per cent to 7 per cent, sequential improvement in the high-frequency indicators, and robust earnings growth expectations contributed to this momentum.

The election results in three out of four key states have raised the expectations of policy continuity in 2024, boosting market confidence.

“We can see a further new high in the market if the bond yields and the crude prices remain at the same levels for the entire month. Largecaps seem better placed at current levels in terms of overall valuations. Based on a favourable macroeconomic picture compared to other emerging markets, flows may shift towards large caps, especially largecap banks, in the near term," Haridasan said.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said that after showing a smart upside recovery from intra-day lows on Wednesday, Nifty witnessed hefty upmove on Thursday and closed the day higher by 256.35 points.

After opening with a sharp upside gap of 184 points, the market moved up further soon after the opening. It later shifted into a narrow intra-day range for better part of the session.