Markets zoom on dovish Fed stance
Market benchmark Sensex surged by 438 points on Wednesday to snap a two-session losing run, tracking firm global trend after the US Federal Reserve softened its stance on rate hikes, while value-buying in recent losers also helped the index post biggest single-day rally in nearly a month.
Sensex up by 438 points while Nifty gains 138 points
Mumbai: Market benchmark Sensex surged by 438 points on Wednesday to snap a two-session losing run, tracking firm global trend after the US Federal Reserve softened its stance on rate hikes, while value-buying in recent losers also helped the index post biggest single-day rally in nearly a month.
The 50-share NSE Nifty reclaimed the 7,700-mark by gaining 138.20 points or 1.82 per cent to 7,735.20. Intra-day, it shuttled between 7,741.95 and 7,643.45. Sentiment turned bullish after other Asian markets rose following a strong Wall Street closing as the US Federal Reserve Chair Janet Yellen signalled that a rate hike was not likely to come before June.
Moreover, covering-up of short positions before Thursday’s expiry of March series in derivatives segment and hopes of a rate cut by Reserve Bank at the monetary policy review on Tuesday, accelerated buying further.
The 30-share Sensex after opening on a strong footing to recapture the crucial 25,000-mark, continued upward journey and hit the day’s high of 25,358.84 points before settling 438.12 points or 1.76 per cent to close at 25,338.58 - its highest closing since January 6. The gauge had lost over 437 points in the last two days.
Tata Steel emerged as the best performer and closed 6.75 per cent up at Rs 324.40 after government extended the safeguard duty on some steel imports by two years till March 2018, to protect domestic industry. Gains in ICICI Bank, Lupin, Tata Motors, SBI, GAIL, BHEL, Adani Ports, Axis Bank, Asian Paints, Bajaj Auto, L&T, Hero MotoCorp, ONGC and Dr Reddy’s too supported the rally.
Among the 30-Sensex constituents, 26 stocks ended with gains while four, HDFC, M&M, Bharti Airtel and Maruti Suzuki, fell. Sector-wise, BSE realty index gained most by rising 3.85 per cent followed by bankex (3.13 pc), metal (3.06 pc), capital goods (2.73 pc), power (2.53 pc), PSU (2.33 pc), healthcare (1.99 pc) and oil&gas (1.98 pc).
Meanwhile, foreign funds continued buying spree as they bought shares worth Rs 513.45 crore as per provisional data. Globally, Asian markets, including Hong Kong and Singapore ended 2.15 per cent and 2.77 per cent higher, while Japan’s Nikkei fell 1.31 per cent. European markets were also in better shape in early deals.