Mkts rebound as US Fed pauses rate hike

Mumbai: Benchmark Sensex rebounded by nearly 490 points, while broader Nifty closed above the 19,100 level on Thursday, snapping their two days of losses following a rally in global markets after the US Federal Reserve kept interest rates unchanged.

The 30-share BSE Sensex jumped 489.57 points or 0.77 per cent to settle at 64,080.90 points. During the day, it rallied 611.31 points or 0.96 per cent to 64,202.64 points. The broader Nifty climbed 144.10 points or 0.76 per cent to 19,133.25 points. In the previous two sessions, Nifty dropped nearly 152 points while Sensex shed 521 points.

“Domestic macros are favourable with positive auto numbers, a surge in GST collection, good factory data and better than estimated Q2 quarter earnings. A pause with Dovish commentary from the Fed led to a rebound in the global and domestic market sentiment. Further, the fall in US bond yields indicates a prolonged pause in interest rate hikes,” said Vinod Nair, head (research) at Geojit Financial Services.

“Most sectors contributed to the move wherein realty, metal and energy were among the top performers,” added Ajit Mishra, SV-P (technical research), Religare Broking Ltd.

“Global stocks rallied as investors reacted to the possible peak of the Federal Reserve’s historic tightening campaign. In Japan, Prime Minister Fumio Kishida announced an economic stimulus package worth about $113 billion that is meant to cushion the blow to household budgets from rising inflation and timed to counter weakening public support for his government,” said Deepak Jasani, head (retail research), HDFC Securities.