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Post Fed: Sensex surged 300 points, Nifty at 8900

Market boost after the Federal Reserve left US rates unchanged and plotted lower trajectory for future hikes

Policy Pulse
Publish Date: Sep 22 2016 10:32AM | Updated Date: Sep 22 2016 3:01PM

Post Fed: Sensex surged 300 points, Nifty at 8900

Market seen a boost after the Federal Reserve left US rates unchanged and plotted a lower trajectory for future hikes. The Sensex surged 323.91 points and reached at 28831.33. While Nifty is up 107.10 points or 1.2 percent at 8884.25.

 

About 924 shares have advanced, 99 shares declined, and 32 shares are unchanged. ICICI Bank, Hero MotoCorp, SBI, Axis Bank and Maruti Suzuki are top gainers. The Indian rupee gained in early trade on Thursday.

 

Rupee has opened higher by 16 paise at 66.86 per dollar versus 67.02 Wednesday. As reported in financial portal – Monney Control, Mohan Shenoi of Kotak Mahindra Bank said, "FOMC at its meeting yesterday left the Fed funds rate unchanged even while the case for hiking has strengthened.

 

After meeting 30 investors across key financial centres in EU and UK last week, Abhay Laijawala of Deutsche Bank says investors appear to be unanimously positive on India and believe that India offers the best risk-reward within emerging markets (EMs).

 

He further says the only major deterrent for most investors currently is rich valuations with Sensex trading at 18.3x on FY17, particularly for the favoured sectors such as consumer staples, autos, private sector banks and so on.

 

Bank of Japan has also kept its policy rate unchanged while introducing yield curve control. In the world of commodities, crude oil prices were up as much as 3 percent after a surprise drop in crude stockpiles. Gold settled higher, scoring a third straight advance.