Markets reverse losses as dovish Fed lifts global equities

Markets reverse losses as dovish Fed lifts global equities

Sensex soars 266 pts; Nifty climbs 84 pts, closes at 11,582.90

Mumbai: The BSE Sensex reversed recent losses to end 266 points higher on Thursday, largely in line with global markets which rallied after US Federal Reserve Chair Jerome Powell bolstered expectations of a rate cut.

After rising as much as 335 points during the day, the 30-share index settled 266.07 points or 0.69 per cent higher at 38,823.11. Similarly, the broader NSE Nifty climbed 84 points, or 0.73 per cent, to 11,582.90.

World markets rose after US Federal Reserve Chairman Jerome Powell told a congressional committee on Wednesday that the central bank is ready to "act as appropriate" to boost growth amid multiple headwinds. Investors are wagering on a rate cut by the Fed as early as this month.

"Dovish commentary from Fed chairman Jerome Powell rekindled rate cut hopes, leading to rebound in equities world over.

Indian markets were no exception with more than half a percent gain in Nifty as well as midcap index.

The rate cuts will improve the liquidity situation globally and eventually will find its way to emerging markets which enhances investment sentiments.

Overhang of budget is gradually fading, and focus is shifting towards global events and earnings," said Sunil Sharma, CIO, Sanctum Wealth Management.

Sectorally, BSE auto, metal, telecom, realty, utilities and finance indices rose up to 1.84 per cent. However, capital goods and consumer durables lost up to 0.69 per cent.

The broader BSE midcap and smallcap indices followed the benchmarks, rising up to 0.56 per cent.

On the currency front, the Indian rupee appreciated 14 paise to 68.43 against the $ (intra-day).

The global oil benchmark Brent crude futures rose 0.61 per cent to $67.42 per barrel amid reduced US output and geopolitical tensions.

Show Full Article
Download The Hans India Android App or iOS App for the Latest update on your phone.
More Stories