The S&P BSE Sensex surged over 100 points in morning trade on Thursday, tracking Asian markets which were trading higher after US Federal Reserve on expected lines hiked rates by 25-basis-point almost after a decade.
Dovish comments from the US Federal Reserve in its monetary policy announcement overnight triggered a relief rally across Asian markets and allayed concerns over rapid rise in interest rates going ahead.
The Nifty50 reclaimed its crucial resistance level of 7,800 supported by gains in auto, banks, metals, realty, and power stocks.
Most other Asian markets rallied taking cue from the jump in US markets post the US Fed's rate hike. Japan's Nikkei surged over 2 per cent while the South Korean Kospi traded higher by 0.2 per cent. Hong Kong's Hang Seng index was up by a per cent. China's Shanghai Composite index also traded higher by 1.5 per cent.
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The 30-share index was trading at 25,618, up 123 points or 0.49 per cent. It touched a high of 25,659.32 and a low of 25,551.79 in morning trade.
The Nifty50 was at 7,787 up 36 points or 0.47 per cent. It touched a high of 7,800.15 and a low of 7,767.65 in the first 30 minutes of trade.
The S&P BSE Midcap Index was up 0.77 per cent and BSE S&P Smallcap Index was trading 0.95 per cent higher.
GAIL (up 2.2 per cent), SBI (up 2.1 per cent), Bajaj Auto (up 1.4 per cent), and Dr Reddy's (up 1.3 per cent) were among the major Sensex gainers.
ONGC (down 1.8 per cent), M&M (down 0.71 per cent), HDFC (down 0.56 per cent), Maruti Suzuki (down 0.30 per cent), and TCS (down 0.11 per cent) were among the major Sensex losers.
Indian markets tracked a global surge in risk assess after the Fed rate hike. This global rally has been triggered by Fed's "dovish" stance. The US central bank overnight said that its monetary policy will remain "accommodative" and there will be "gradual" increase in Fed fund rates.
My sense is that this was on expected lines. Even the commentary is what most people assumed that you will see about three-four further rate hikes in 2016. So, I do not think this is really a negative surprise or a positive surprise in that sense," says Sanjeev Prasad of Kotak Institutional Equities. Going forward, the local stock market will look for triggers locally, he added. "So, we have to look at what is happening in earnings growth, what is happening to reforms story particularly goods and services tax (GST)," he said.
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The Fed hike is on expected lines. The accommodative outlook is good," says Economic Affairs Secretary Shaktikanta Das. "The good news is there is sustained recovery in the US, which bodes well for emerging markets such as India." "Going forward, the Fed will likely be watchful of events in emerging markets before deciding on monetary course," he said. 9.45 am: While so far the Fed event has proved to be a non-event, there are still concerns that a tighter monetary policy at the US central bank could lead to a credit crunch globally, particularly in Asia. Dollar credit to non-banks outside the U.S. came in at $9.8 trillion at the end of the second quarter, with around $3.3 trillion of that lent to emerging market economies, according to the Bank for International Settlements (BIS). In some major emerging markets, the dollar debt of non-bank borrowers doubled from the first quarter of 2009 through the second quarter of 2015, the BIS said. "Since high overall dollar debt can leave borrowers vulnerable to rising dollar yields and dollar appreciation, dollar debt aggregates bear watching," the BIS said in a report published earlier this month.
Dovish comments from the US Federal Reserve in its monetary policy announcement overnight triggered a relief rally across Asian markets and allayed concerns over rapid rise in interest rates going ahead.
The Nifty50 reclaimed its crucial resistance level of 7,800 supported by gains in auto, banks, metals, realty, and power stocks.
Most other Asian markets rallied taking cue from the jump in US markets post the US Fed's rate hike. Japan's Nikkei surged over 2 per cent while the South Korean Kospi traded higher by 0.2 per cent. Hong Kong's Hang Seng index was up by a per cent. China's Shanghai Composite index also traded higher by 1.5 per cent.
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The 30-share index was trading at 25,618, up 123 points or 0.49 per cent. It touched a high of 25,659.32 and a low of 25,551.79 in morning trade.
The Nifty50 was at 7,787 up 36 points or 0.47 per cent. It touched a high of 7,800.15 and a low of 7,767.65 in the first 30 minutes of trade.
The S&P BSE Midcap Index was up 0.77 per cent and BSE S&P Smallcap Index was trading 0.95 per cent higher.
GAIL (up 2.2 per cent), SBI (up 2.1 per cent), Bajaj Auto (up 1.4 per cent), and Dr Reddy's (up 1.3 per cent) were among the major Sensex gainers.
ONGC (down 1.8 per cent), M&M (down 0.71 per cent), HDFC (down 0.56 per cent), Maruti Suzuki (down 0.30 per cent), and TCS (down 0.11 per cent) were among the major Sensex losers.
Indian markets tracked a global surge in risk assess after the Fed rate hike. This global rally has been triggered by Fed's "dovish" stance. The US central bank overnight said that its monetary policy will remain "accommodative" and there will be "gradual" increase in Fed fund rates.
My sense is that this was on expected lines. Even the commentary is what most people assumed that you will see about three-four further rate hikes in 2016. So, I do not think this is really a negative surprise or a positive surprise in that sense," says Sanjeev Prasad of Kotak Institutional Equities. Going forward, the local stock market will look for triggers locally, he added. "So, we have to look at what is happening in earnings growth, what is happening to reforms story particularly goods and services tax (GST)," he said.
http://knowyourmeme.com/users/buylinks-backs
The Fed hike is on expected lines. The accommodative outlook is good," says Economic Affairs Secretary Shaktikanta Das. "The good news is there is sustained recovery in the US, which bodes well for emerging markets such as India." "Going forward, the Fed will likely be watchful of events in emerging markets before deciding on monetary course," he said. 9.45 am: While so far the Fed event has proved to be a non-event, there are still concerns that a tighter monetary policy at the US central bank could lead to a credit crunch globally, particularly in Asia. Dollar credit to non-banks outside the U.S. came in at $9.8 trillion at the end of the second quarter, with around $3.3 trillion of that lent to emerging market economies, according to the Bank for International Settlements (BIS). In some major emerging markets, the dollar debt of non-bank borrowers doubled from the first quarter of 2009 through the second quarter of 2015, the BIS said. "Since high overall dollar debt can leave borrowers vulnerable to rising dollar yields and dollar appreciation, dollar debt aggregates bear watching," the BIS said in a report published earlier this month.
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