Mkts shrug off US rate hike
Global investors welcome rate hike by US Federal Reserve; Sensex, Nifty end above 57,800/17,200; FIIs turning net buyers after a long wait; No trading today
image for illustrative purpose
Posting Weekly Gain
- BSE Sensex rallied 1,047.28 pts to 57,863.93
- NSE Nifty surged 311.70 pts to 17,287.05
- Initiation of peace talks between Russia and Ukraine
- Continued buying of Russian oil by India and China
- For week, Sensex climbed 2,313.63 pts or 4.165, Nifty advanced 656.60 pts or 3.95%
Mumbai: The BSE Sensex vaulted over 1,000 points for the second straight session on Thursday, tracking an overall bullish trend in global equities despite the US Federal Reserve hiking rates and signalling further policy tightening to tame inflation. A reversal in selling by foreign portfolio investors and sustained recovery in the rupee further boosted domestic equities, traders said.
The 30-share BSE benchmark rallied 1,047.28 points or 1.84 per cent to finish at 57,863.93. Likewise, the broader NSE Nifty surged 311.70 points or 1.84 per cent to 17,287.05.
HDFC was the top gainer in the Sensex pack, spurting 5.50 per cent, followed by Titan, Kotak Bank, Reliance Industries, Asian Paints, Tata Steel and Maruti. Only Infosys and HCL Tech closed lower, skidding up to 1.81 per cent.
"Global markets welcomed the Fed decision to hike rates by 25 bps as it was on expected lines. However, the Fed's projection of another six hikes during the year is hawkish. FIIs turning net buyers after a long wait was also a relief for the domestic market. With crude prices receding, war tensions calming down and foreign investors back to buying, we can expect the rally in the domestic market to continue," said Vinod Nair, head (research) at Geojit Financial Services.
Markets will remain closed on Friday on account of Holi. During the holiday-shortened week, the Sensex climbed 2,313.63 points or 4.16 per cent, while the Nifty advanced 656.60 points or 3.95 per cent.
"The markets have been dominated by risk off sentiment in last few weeks due to concerns on high commodity prices owing to Russia-Ukraine crisis and monetary tightening by Federal Reserve. Fed undertook 25 bps hike -- first since Covid crisis -- and has guided the markets for six more hikes buoyed by the resilience of the economy and strong labour market," said Hemant Kanawala, head (equity), Kotak Mahindra Life Insurance, said.
