Sensex soars 489 points as dovish Fed lifts global markets

Sensex soars 489 points as dovish Fed lifts global markets

Shares of Jet Airways witness a massive rebound, ending 93 per cent higher, after tanking nearly 90 per cent in the past 13 sessions

Mumbai: Equity benchmark Sensex surged 489 points on Thursday in tandem with upbeat global markets after the US Federal Reserve's dovish stance galvanised investor sentiment.

The 30-share Sensex, after a lacklustre opening, witnessed across-the-board buying led by banking, healthcare and auto counters.

It finally settled 488.89 points, or 1.25 per cent, higher at 39,601.63. Similarly, the broader NSE Nifty soared 140.30 points, or 1.20 per cent, to finish at 11,831.75.

Global equities marched higher after the US central bank indicated its rate cut cycle might begin as soon as next month.

The Fed left the interest rates unchanged after its two-day policy meeting on Wednesday, but said it was ready to take action to support growth amid growing uncertainties. A strengthening rupee and expectations of business-friendly measures in the forthcoming Budget further boosted sentiment, traders said.

Yes Bank was the biggest gainer in the Sensex pack, rallying 10.94 per cent. Other gainers included Sun Pharma, IndusInd Bank, L&T, ICICI Bank, Maruti, Bajaj Auto, Tata Motors and ONGC, rallying up to 4.01 per cent. HUL, HDFC Bank, ITC and NTPC were the only losers in the index, shedding up to 0.26 per cent.

Meanwhile, shares of Jet Airways witnessed a massive rebound, ending 93 per cent higher, after tanking nearly 90 per cent in the past 13 sessions. "Market was concerned that government has not yet provided any hint or relief to the slowing economy.

On hearing a series of meetings by PM and FM to draw a road map for 100 days agenda and Budget, it provided confidence to the market. Additionally, GST Council is likely to meet and review its position.

Also, a relief rally in the global market given the dovish view by Fed supported the domestic market," said Vinod Nair, Head of Research, Geojit Financial Services.

All sectoral indices ended in the green, with BSE auto, capital goods, healthcare, telecom, consumer durables, realty and metal surging up to 2.46 per cent. The broader BSE midcap and smallcap indices followed benchmarks, gaining up to 1.64 per cent.

On the global front, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended significantly higher. Markets in Europe too were trading in the green in early deals.

Hopes of a breakthrough in US-China trade talks too lifted spirits, traders said. Meanwhile, the Indian rupee appreciated 11 paise to 69.57 against the US dollar intra-day.

Brent crude futures, the global oil benchmark, rose 2.67 per cent to $63.47 per barrel amid a flare up of geopolitical tensions in the Middle East.

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