Sensex jumps 490 pts, snaps 2-day fall amid global rally on US Fed rate decision

Mumbai: Benchmark Sensex rebounded by nearly 490 points while broader Nifty closed above the 19,100 level on Thursday, snapping their two days of losses following a rally in global markets after the US Federal Reserve kept interest rates unchanged.

The 30-share BSE Sensex jumped 489.57 points or 0.77 per cent to settle at 64,080.90. During the day, it rallied 611.31 points or 0.96 per cent to 64,202.64.

The broader Nifty climbed 144.10 points or 0.76 per cent to 19,133.25. In the previous two sessions, Nifty dropped nearly 152 points while Sensex shed 521 points.

Among the Sensex firms, IndusInd Bank, Tata Steel, Tata Motors, Sun Pharma, Infosys, Mahindra & Mahindra, Infosys, NTPC, Bharti Airtel, HCL Technologies and Axis Bank were the biggest gainers.

Tech Mahindra and Bajaj Finance were the laggards.

"A pause with dovish commentary from the Fed led to a rebound in the global and domestic market sentiment. Further, the fall in US bond yields indicates a prolonged pause in interest rate hikes," Vinod Nair, Head of Research at Geojit Financial Services said.

"Domestic macros are favourable with positive auto numbers, a surge in GST collection, good factory data and better than estimated Q2 quarter earnings," Nair added.

Most sectors contributed to the move wherein realty, metal and energy were among the top performers, Ajit Mishra, SVP - Technical Research, Religare Broking Ltd, said.

In the broader market, the BSE midcap gauge jumped 1.20 per cent and smallcap gained 0.97 per cent.

All the indices ended with gains, with realty rallying 2.55 per cent, telecommunication jumping 2.42 per cent, metal (1.68 per cent), power (1.60 per cent), capital goods (1.15 per cent), consumer durables (1.13 per cent), commodities (1.10 per cent).

In Asian markets, Seoul, Tokyo and Hong Kong ended in the green while Shanghai settled lower. European markets were trading in positive territory. The US markets ended with gains on Wednesday.

"Global stocks rallied as investors reacted to the possible peak of the Federal Reserve’s historic tightening campaign.

"In Japan, Prime Minister Fumio Kishida announced an economic stimulus package worth about $113 billion that is meant to cushion the blow to household budgets from rising inflation and timed to counter weakening public support for his government," said Deepak Jasani, Head of Retail Research, HDFC Securities.

Global oil benchmark Brent crude jumped 1.67 per cent to USD 86.12 a barrel.

Foreign institutional investors (FIIs) offloaded equities worth Rs 1,816.91 crore on Wednesday, according to exchange data.

The BSE benchmark declined 283.60 points or 0.44 per cent to settle at 63,591.33 on Wednesday. The Nifty went down by 90.45 points or 0.47 to 18,989.15.