new Delhi: The BSE Sensex rose over 1,000 points for the second straight session on Thursday, tracking an overall bullish trend in global equities despite signs of further policy tightening by the US Federal Reserve to reduce inflation. .
Traders said reversal in selling by foreign portfolio investors and sustained recovery in the rupee gave a further boost to domestic equities.
The 30-share BSE benchmark ended 1,047.28 points or 1.84 per cent higher at 57,863.93. Similarly, the broader NSE Nifty rose 311.70 points or 1.84 per cent to 17,287.05.
HDFC was the top gainer in the Sensex pack, up 5.50 per cent, followed by Titan, Kotak Bank, Reliance Industries, Asian Paints, Tata Steel and Maruti.
Only Infosys and HCL Tech closed down 1.81 per cent.
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“Global markets welcomed the Fed’s decision to increase rates by 25 bps as it was on expected lines. However, the Fed anticipates six more hikes during the year.
Vinod Nair said, “After a long wait, becoming a net buyer of FIIs was also a relief for the domestic market. With the fall in crude oil prices, easing of war tensions and buying by foreign investors, we are seeing a rally in the domestic market. can be expected to continue.” Head of Research at Geojit Financial Services.
Markets will remain closed on Friday on account of Holi.
The Sensex rose 2,313.63 points or 4.16 per cent, while the Nifty gained 656.60 points or 3.95 per cent during the holiday week.
“Risk sentiment in the market has been dominated by concerns over higher commodity prices due to the Russia-Ukraine crisis and monetary tightening by the Federal Reserve over the past few weeks. The Fed hiked 25 bps – for the first time since the COVID crisis – and Have guided the market for six more growth from the resiliency of the economy and a strong labor market, said Hemant Kaanawala, Head-Equity, Kotak Mahindra Life Insurance.
On the other hand, the start of peace talks between Russia and Ukraine, and continued purchases of Russian oil by India and China have provided some relief to commodity prices, although the situation is evolving and a resolution is still far away, he said. .
Barring IT and tech, all BSE sectoral indices ended Friday’s session with gains, with realty, consumer durables, energy and finance rising up to 3.14 per cent.
Midcap and smallcap stocks on BSE rose up to 1.18 per cent.
The US Federal Reserve on Wednesday approved a 0.25 percent increase in interest rates, marking the first hike since 2018. It also indicated that further hikes would be needed to fight multi-decade high inflation.
Elsewhere in Asia, shares ended with significant gains in Tokyo, Seoul, Hong Kong and Shanghai.
Stock exchanges in Europe were trading on a mixed note in mid-session deals.
Meanwhile, international oil benchmark Brent crude rose 3.97 per cent to $101.91 per barrel.
The rupee on Thursday edged higher by 41 paise at 75.80 (provisional) against the US dollar, supported by positive domestic equities and weakness in the broader dollar.
Foreign institutional investors became net buyers on Wednesday after buying shares worth Rs 311.99 crore, according to exchange data.