Benchmark stock indices on Thursday surged nearly 2% tracking global cues following a ‘less aggressive’ stance by the U.S. Federal Reserve which increased interest rates by 75 basis points (bps) in an ongoing bid to counter inflation.
Amid buying momentum, the S&P BSE Sensex surged 1,041.47 points. or 1.87%. to 56,857.79., with gains led by financial, technology and realty stocks.
The rupee appreciated 26 paise to 79.65 against the U.S. dollar on Thursday, tracking a firm trend in domestic equities.
Stocks that gained the most in the Sensex pack include Bajaj Finance (10.68%), Bajaj Finserv (10.14%), Tata Steel (4.59%), Kotak Bank (4.25%), IndusInd Bank (3.9%), Infosys (3.14%). The NSE Nifty-50 index too gained 287.60 points, or 1.73%, to 16,929.60.
“Markets traded buoyant and gained tracking firm global cues,” said Ajit Mishra, vice-president, Research, Religare Broking. “Participants took note of the less aggressive stance from the U.S. Fed which resulted in a firm start, which further strengthened as the day progressed,” he added.
“After the U.S. Fed meet, participants are now eyeing U.S. GDP data [expected on Thursday] for further cues and we’ll see the reaction in early trades. Besides, earnings announcements would continue to trigger stock-specific volatility,” he said.
Vinod Nair, head of Research, Geojit Financial Services, said: “The Fed’s decision was as expected, while their positive comment dismissing the possibility of a recession and hinting at a slower pace of rate hikes in the coming months boosted global sentiments”.
“As a result, the Indian rupee strengthened, potentially attracting foreign funds into the domestic market,” he added.
(With PTI inputs)
