Market players were encouraged on Thursday by the US Federal Reserve’s unexpectedly dovish stance. The Nifty50 finished at 19,133, up 144 points, or 0.76 percent, while the S&P BSE Sensex surged 490 points, or 0.77 percent, to conclude at 64,081 levels.
The market saw remarks made by US Federal Reserve Chairman Jerome Powell that “despite elevated inflation, the longer term inflation expectations remain well anchored” as rather dovish.
Analysts concluded that this comment implied that the Fed may not raise interest rates once more during current rate-hiking cycle.
The following companies made between one and three percent gains on the bourses: Britannia Industries, Hindalco, Apollo Hospitals, Sun Pharma, IndusInd Bank, Tata Motors, Infosys, Axis Bank, HUL, Tata Steel, HCL Tech, NTPC, Bharti Airtel, TCS, Nestle India, SBI, RIL, and Power Grid.
In contrast, the larger markets beat the benchmarks, as seen by the 1.2% increase in the BSE MidCap index and the 0.97% increase in the BSE SmallCap.
All of the sectoral indexes saw gains: the Nifty Metal index increased 1.55 percent, the Nifty PSU Bank index added 1.5%, and the Nifty Realty index increased 2.38 percent.
The market saw Fed Chairman Jerome Powell’s remark that “despite elevated inflation, the longer term inflation expectations remain well anchored” as a relatively dovish one, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. current suggests that the Fed may not raise interest rates once more during current rate-hiking cycle. As a result, bond yields dropped significantly. The benchmark yield on 10-year bonds dropped 17 basis points to 4.75 percent, while the stock markets rallied. The 10-year US bond yield of 4.75%, Brent oil at around $85 and the dollar index at 106.3 are all favorable for equity markets in the short run.
“Despite the uncertainty surrounding the Israel-Hamas conflict, there is a possibility that the FIIs, who were sustained sellers in October, may turn buyers and if that happens, short-covering can take markets higher,” Vijaykumar said.
As far as growth and value are concerned, prominent banks make decent investments. IT is capable of a resurgence,” he said.
