Sensex closes 266 points higher at 38,823, Nifty up 84 points; metal, auto, financial stocks gain

Mumbai: The BSE Sensex reversed recent losses to end 266 points higher on Thursday, largely in line with global markets which rallied after US Federal Reserve Chair Jerome Powell bolstered expectations of a rate cut.

After rising as much as 335 points during the day, the 30-share index settled 266.07 points or 0.69 percent higher at 38,823.11. Similarly, the broader NSE Nifty climbed 84 points, or 0.73 percent, to 11,582.90.

World markets rose after US Federal Reserve Chairman Jerome Powell told a congressional committee Wednesday that the central bank is ready to "act as appropriate" to boost growth amid multiple headwinds.

 Sensex closes 266 points higher at 38,823, Nifty up 84 points; metal, auto, financial stocks gain

File image of stock broker. Reuters.

Investors are wagering on a rate cut by the Fed as early as this month.

Hero MotoCorp was the top gainer in the Sensex pack, spurting 4.46 percent. IndusInd Bank, Tata Motors, Vedanta, SBI, M&M, Sun Pharma, Tata Steel, HDFC and HDFC Bank too rose up to 3.63 percent.

On the other hand, Tech Mahindra, Yes Bank, TCS, L&T, Axis Bank and NTPC lost up to 1.27 percent.

"Dovish commentary from Fed chairman Jerome Powell rekindled rate cut hopes, leading to rebound in equities world over. Indian markets were no exception with more than half a percent gain in Nifty as well as a midcap index. The rate cuts will improve the liquidity situation globally and eventually will find its way to emerging markets which enhances investment sentiments.

"Overhang of the budget is gradually fading and focus is shifting towards global events and earnings," said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.

Sectorally, BSE auto, metal, telecom, realty, utilities and finance indices rose up to 1.84 percent. However, capital goods and consumer durables lost up to 0.69 percent.

The broader BSE midcap and smallcap indices followed the benchmarks, rising up to 0.56 percent.

Elsewhere in Asia, China's Shanghai Composite Index gained 0.08 percent, Hong Kong's Hang Seng climbed 0.81 percent, Japan's Nikkei rose 0.51 percent and South Korean benchmark Kospi ended 1.06 percent higher.

Bourses in Europe were also trading higher in early deals.

On the currency front, the Indian rupee appreciated 14 paise to 68.43 against the US dollar (intra-day).

The global oil benchmark Brent crude futures rose 0.61 percent to $67.42 per barrel amid reduced US output and geopolitical tensions.

Updated Date: Jul 11, 2019 17:51:33 IST