Equity benchmark indices, the Nifty50 and the Sensex, experienced a solid rebound of nearly 1% in early trade on Thursday. This comes after a two-day decline, as global markets rallied following the US Fed’s decision to keep rates unchanged. The Sensex surged 593.8 points to reach 64,185.13, while the Nifty climbed 179.3 points to 19,168.45.
Several companies within the Sensex showed significant gains, including IndusInd Bank, Kotak Mahindra Bank, Axis Bank, Titan, Infosys, Bajaj Finance, State Bank of India, Tata Consultancy Services, ICICI Bank, and HDFC Bank. However, Tata Steel stood as the sole laggard.
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong also performed well and traded in the green.
The US markets closed with gains on Wednesday. The pause decision the Fed was largely expected, but the market found comfort in the less hawkish commentary. Fed chief Jerome Powell’s statement that “despite elevated inflation, the longer-term inflation expectations remain well anchored” was interpreted as slightly dovish, implying that the Fed may not raise rates again in this cycle. As a result, bond yields sharply declined, with the benchmark 10-year bond yield dropping 17 bps to 4.75%, leading to a positive response in equity markets.
Global oil benchmark Brent crude saw a 0.99% increase, reaching USD 85.47 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,816.91 crore on Wednesday, according to exchange data.
On Wednesday, the BSE benchmark experienced a decline of 283.60 points or 0.44%, settling at 63,591.33. Likewise, the Nifty declined 90.45 points or 0.47%, reaching 18,989.15.