Last Updated: November 02, 2023, 15:45 IST
Sensex Today: An surprising dovish tone from the US Federal Reserve cheered market individuals on Thursday. The S&P BSE Sensex zoomed 490 factors, or 0.77 per cent, to finish at 64,081 ranges, whereas the Nifty50 ended at 19,133, up 144 factors or 0.76 per cent.
The US Federal Reserve Chairman Jerome Powell’s remark that “despite elevated inflation, the longer term inflation expectations remain well anchored” was taken by the market as a barely dovish assertion.
The implication of this assertion, analysts stated, is that the Fed might not hike charges once more on this fee climbing cycle.
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 superior between 1 per cent and three per cent.
The broader markets, in the meantime, outperformed the benchmarks with the BSE MidCap index up 1.2 per cent, and the BSE SmallCap up 0.97 per cent.
Sectorally, all of the indices cornered features with the Nifty Realty index rising 2.38 per cent, the Nifty PSU Bank index including 1.5 per cent, and the Nifty Metal index up 1.55 per cent.
V Ok Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated: “The Fed chief Jerome Powell’s comment that “despite elevated inflation, the longer term inflation expectations remain well anchored” was taken by the market as a barely dovish assertion. The implication of this assertion is that the Fed might not hike charges once more on this fee climbing cycle. Consequently the bond yields declined sharply. The benchmark 10-12 months bond yield declined 17 bp to 4.75 per cent and the fairness markets responded positively. In the close to-time period, the greenback index at 106.3, Brent crude at round $85 and the ten-12 months US bond yield at 4.75 % are beneficial for inventory markets.”
“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 despite the uncertainty surrounding the Israel-Hamas conflict,” Vijaykumar stated.
“From the valuation and growth perspective, leading banks provide good buying opportunities. IT can stage a comeback,” he added.
