Sensex jumps nearly 850 points in early trade; Nifty breaches 17,000 level on global indices – The New Indian Express
MUMBAI: Benchmark Sensex shares jumped nearly 850 points at the open of trade on Thursday, following a strong rally in global stocks after the U.S. Fed raised interest rates.
In addition, new inflows of foreign funds and lower crude oil prices also helped domestic stocks, traders said.
The 30-stock Sensex traded 846.31 points or 1.49% higher at 57,662.96, and the broader Nifty was up 236.80 points or 1.39% at 17,212.15.
All Sensex voters were in the green.
HDFC was the top gainer in the Sensex pack, climbing 3.14%, followed by Axis Bank, Asian Paints, Kotak Bank, IndusInd Bank, HDFC Bank, ICICI Bank and Bajaj Finance.
In the previous session, the 30-stock index jumped 1,039.80 points or 1.86% to end at 56,816.65.
Similarly, the broader NSE Nifty jumped 312.35 points or 1.87% to 16,975.35.
Stock exchanges in Hong Kong, Seoul and Tokyo rallied in mid-term trading, while Shanghai was in the red.
Stock markets in the United States closed with strong gains overnight after the US Federal Reserve raised interest rates, marking the first hike since 2018.
The Fed also indicated that more hikes would be needed to fight inflation.
The US central bank on Wednesday approved a 0.25 percentage point increase in interest rates.
The international oil benchmark, Brent, rose 0.86% to $98.86 a barrel.
“The Fed’s 25 basis point rate hike was in line with market expectations. The Fed’s projections of six more hikes this year are hawkish and therefore the smart rally in markets with the S&P 500 and the Nasdaq posting gains of 2.24% and 3.17% respectively was a bit unexpected,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
Vijayakumar said the market was oversold and the resulting short cover pushed the indices higher.
The market gained confidence from Fed Chief Powel’s statement that “the US economy is very strong and well positioned to handle tighter monetary policy.”
He further noted that short hedging in India, too, would boost markets on Thursday.
“REITs are turning long after a long run and weakness in crude will support the market. There is upside potential in financials, particularly in high-quality private banks where REITs were sustained sellers,” he said. -he declares.
Foreign institutional investors turned net buyers after buying shares worth Rs 311.99 crore on Wednesday, according to exchange data.
Meanwhile, Russian forces continued their strikes against Ukraine on Wednesday, even as both countries expressed optimism about efforts to broker a resolution to end the conflict.