Nifty scales record high, Sensex jumps over 200 points as US Fed's dovish outlook boosts mood
Foreign institutional investors have been showing strong appetite for local stocks in recent sessions with FIIs infusing over Rs 5,000 crore in local shares in past two sessions
Unperturbed by a quarter percentage point (25 bps) hike in interest rate by the US Federal Reserve on Wednesday, domestic key equity benchmark indices witnessed strong upsurge in early trade, with the broader 50-share Nifty scaling a life-time high of 9,153.
Indian stock markets mostly reflected the strong buoyancy mood witnessed across the Asian markets following overnight gains in key US gauges.
At 10.45 am, the 30-share BSE Sensex was at 29,570.21, up 172.10 points, or 0.6 percent from previous close. Following a firm opening, benchmark Sensex moved up sharply to touch a high of 29,614.79, up 220 points.
The broader CNX Nifty was at 9,145.65, up 60.85 points, or 0.7 percent higher.
The Federal Reserve, as expected, raised the benchmark interest rate by a quarter percentage point, but gave a more dovish outlook for future hikes.
The rupee was in a sweet spot, strengthening by another 47 paise to hit a fresh 16-month high of 65.22 against the dollar.
Foreign institutional investors have been showing strong appetite for local stocks in recent sessions with FIIs infusing over Rs 5,000 crore in local shares in past two sessions, while domestic institutional investors buying shares worth Rs 40,000 crore in last six months.
All the indices, led by metal, infrastructure and capital goods, advanced with gains up to 1.24 per cent.
The buoyancy is in line with a firming trend at other Asian bourses, tracking overnight gains in the US, after the Federal Reserve went for a rate increase.
Besides, a flood of foreign capital in domestic bourses gave a push to the equities, traders added.
Japan's Nikkei, however, shed 0.13 per cent.
The US Dow Jones Industrial Average ended 0.54 per cent higher yesterday.
At the interbank foreign exchange market, the local currency opened at 74.16 and witnessed an intra-day high of 74.13 and a low of 74.41 against the US dollar
Sensex increased by 568.90 points to end at 61,305.95 while Nifty ended at 18,337.90 after gaining 176.15 points.
BSE smallcap and midcap indices went down by 0.5-1.2 percent. On the other hand, India VIX increased by 5.67 percent and ended at 17.33 levels.