Indian benchmark equity indices, the Sensex and the Nifty, experienced a significant rebound of nearly 1% on Thursday after a two-day decline. This surge followed a rally in global markets, primarily driven by the US Federal Reserve’s decision to keep interest rates unchanged. The 30-share BSE Sensex soared by 489.57 points or 0.77%, settling at 64,080.90. Throughout the day, it rallied as high as 611.31 points or 0.96%, reaching 64,202.64. The Nifty also experienced a notable climb of 144.10 points or 0.76%, closing at 19,133.25.
Among the top gainers in the Sensex firms were IndusInd Bank, Tata Steel, Tata Motors, Sun Pharma, Infosys, Mahindra & Mahindra, NTPC, Bharti Airtel, HCL Technologies, and Axis Bank. On the other hand, Tech Mahindra and Bajaj Finance performed relatively poorly.
The rebound in global and domestic market sentiment can be attributed to a pause in interest rate hikes, coupled with dovish commentary from the Fed. Vinod Nair, the Head of Research at Geojit Financial Services, commented on these developments, stating that a fall in US bond yields indicates an extended pause in rate hikes. Furthermore, Nair pointed out the favorable domestic macros, including positive auto numbers, a surge in GST collection, promising factory data, and better-than-expected Q2 quarter earnings.
In the Asian markets, Seoul, Tokyo, and Hong Kong closed in the green, while Shanghai settled lower. On a positive note, European markets were trading in positive territory, and the US markets ended with gains on Wednesday. Global oil benchmark Brent crude saw a notable increase of 1.67%, reaching USD 86.12 per barrel.
In terms of foreign investments, exchange data revealed that foreign institutional investors (FIIs) sold off equities worth Rs 1,816.91 crore on Wednesday. The previous day, the BSE benchmark experienced a decline of 283.60 points or 0.44%, settling at 63,591.33. Similarly, the Nifty went down by 90.45 points or 0.47%, closing at 18,989.15.
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