Wednesday, February 1, 2023
HomeUncategorizedMarkets cheer Fed policy, China ties; Indices up most in 3 months

Markets cheer Fed policy, China ties; Indices up most in 3 months

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Market-UpMarkets on Thursday rose the most in over 3 months with Sensex jumping 481 points to 27,112.21 and Nifty soaring over 139 points to 8,114.75 as FIIs pumped funds on Fed’s pledge to retain rates at low levels for a considerable time and rising optimism over India’s trade ties with China.

With Dow Jones surging to record overnight, most Asian and European markets rose after the US central bank stuck to a plan to begin raising near-zero interest rates only in 2015.

The 30-share BSE Sensex after opening in the negative zone rebounded to close above the key 27,000-mark for the first time since September 12. It ended at 27,112.21, gaining 480.92 points, or 1.81 percent. This is its biggest single session gain in over 3 months since June 2 (467.51 points).

The gauge had gained over 138 points on Wednesday.

The Fed policy announcement last night allayed fears of capital outflows. “With US rate rise possibilities becoming a more distant reality, emerging economies including India can expect to keep their hot monies ‘hot’ for some more time,” said Debopam Chaudhuri, Chief Economist, ZyFin Research.

Domestic investors also cheered stronger trade ties with China with the country committing investments worth USD 20 billion in India over the next five years.

“Participants were truly excited by the prospects of huge investments by China in India’s infrastructure, railway & manufacturing projects,” said Devang Mehta, Sr. VP & Head – Equity Advisory, Anand Rathi Financial Services.

Buying was strong with all sectoral indices led by realty, consumer durables and capital goods ending in positive zone with gains of up to 4.65 percent. In the 30-Sensex constituents, 28 ended higher while two shares ended lower.

The 50-share NSE Nifty regained 8,100 level and touched the day’s high of 8,120.85 before settling 139.25 points higher at 8,114.75. Initially, it had fallen to 7,939.70.

Today’s 139.25-point gain is also Nifty’s biggest rise in over months since June 2 (132.55 points).

Shares of Hero MotoCorp stole the show by rising 5.57 per cent after the company entered into a pact with Government of Andhra Pradesh for setting up a two-wheeler plant in Chittoor.

Stocks of Sun Pharmaceutical Industries ended 1.63 per cent higher after the company entered into a licensing agreement with Merck & Co. Other major gainers included HDFC (3.73 per cent), BHEL (3.51 per cent), Bajaj Auto (3.47 per cent), Dr Reddys (3.34 per cent), L&T (3.57 per cent), Tata Motors (3.70 per cent), Maruti Suzuki (2.48 per cent), Tata Power (2.86 per cent), Tata Steel (1.60 per cent) and Wipro (2.40 per cent).

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