Sensex, Nifty each gain over 1.50% to hit fresh highs

Sensex, Nifty each gain over 1.50% to hit fresh highs
Image Source : FREEPIK

Sensex, Nifty each gain over 1.50% to hit fresh highs

Equity benchmark Sensex rallied over 775 points to hit a record high of 57,758.82 amid a positive trend in global markets after the US Federal Reserve hinted that it may begin easing its extraordinary support measures for the economy later this year.

The 30-share Sensex was trading above 59,700 (1.30 per cent high from the previous closing of 58,927).

Similarly, Nifty surged more than 230 points or over 1.31 per cent to sit above 17,750. It touched a high of 17,782.40 in the intraday trade till 1 PM.

In the previous session, the 30-share index slipped 77.94 points or 0.13 per cent to close at 58,927.33, and Nifty declined 15.35 points or 0.09 per cent to 17,546.65.

Foreign Institutional Investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 1,943.26 crore on Wednesday, as per provisional exchange data.

US stocks finished sharply higher in the overnight session after the Federal Reserve’s decision to keep its massive USD 120 billion monthly asset purchase programme intact to support the economy, said Binod Modi Head-Strategy at Reliance Securities. 

The Federal Reserve Chair Jerome Powell said the Fed plans to announce as early as November that it will start to taper its monthly bond purchases, should the job market maintain its steady improvement.

“Powell indicated that the Central Bank may announce a pullback of its asset purchase programme in the November policy meeting and could start to raise interest rates in 2022, which was largely expected by markets. In our view, investors may continue to take comfort out of the FOMC meeting in the context that there is no final time frame yet to cut or stop asset purchase programmes,” he noted.

Domestic equities look to be good as of now, he said, adding that favourable outcome from FOMC meeting and visible ease of rising concerns from possible defaults from Evergrande should essentially offer comfort to global markets.

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