Markets

Benchmark Indices Rise as U.S. Fed leaves rates unchanged

A view of the Bombay Stock Exchange building in Mumbai on November 5, 2014. File Photo.

A view of the Bombay Stock Exchange building in Mumbai on November 5, 2014. File Photo.   | Photo Credit: Paul Noronha

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Yes Bank was the top gainer in the Sensex rallying up to 4.32%, followed by ICICI Bank, Tata Motors, Tata Steel, Vedanta, IndusInd Bank, Hero MotoCorp, SBI and Sun Pharma.

BSE Sensex climbed over 150 points on Thursday, tracking gains in other Asian equities, after U.S. Federal Reserve kept interest rates unchanged at its policy meeting, hinting at an accommodative stance throughout next year.

The 30-share index was trading 149.75 points or 0.37% higher at 40,562.32 in morning trade. The broader Nifty was trading 47.60 points or 0.40% up at 11,957.75.

Yes Bank was the top gainer in the Sensex pack rallying up to 4.32%, followed by ICICI Bank, Tata Motors, Tata Steel, Vedanta, IndusInd Bank, Hero MotoCorp, SBI and Sun Pharma.

ONGC was the top loser, shedding up to 1.25%. Bharti Airtel, Kotak Bank, PowerGrid, ICICI Bank and HDFC were also trading in the red.

In the previous session, the 30-share gauge finished 172.69 points or 0.43% higher at 40,412.57, and the Nifty climbed 53.35 points or 0.45% to close at 11,910.15.

According to traders, domestic investors following global markets were enthused by U.S. Federal Reserve’s dovish outlook in its policy meet on Wednesday.

The Fed, as expected, made no change to interest rates in an effort to maintain solid economic growth.

The Fed chief Jerome Powell said the U.S. outlook “remains favouable despite global developments and ongoing risks” as he described the grinding U.S.-China trade war as a drag on global growth.

In the domestic market, foreign investors turned net buyers in the capital market on Wednesday, traders said, adding that investors are also awaiting factory output data to be released on Thursday.

Foreign institutional investors purchased ₹605.41 crore, while domestic institutional investors bought shares worth ₹239.87 crore, according to data available with stock exchange.

Elsewhere in Asia, bourses in Hong Kong, Shanghai, Tokyo and Seoul were trading on a positive note.

Stock exchanges on Wall Street too settled higher after the Fed meet outcome.

Brent futures, the global oil benchmark, rose 0.44 per cent to $64 per barrel.

Meanwhile, the rupee appreciated by 16 paise to ₹70.68 in morning session.

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Printable version | Jan 24, 2020 9:55:35 AM | https://www.thehindu.com/business/markets/benchmark-indices-rise-as-us-fed-leaves-rates-unchanged/article30284161.ece

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