Sensex rebounded over 300 points amid higher global markets.
Indian stock markets rose sharply today, tracking higher global markets, after comments from a US central bank official eased worries about faster rate hikes in the United States. The Sensex and Nifty have been under pressure recently amid continued worries about the fallout from a $1.77 billion fraud that hit Punjab National Bank, and concerns that the Reserve Bank of India could soon move to raise interest rates to contain accelerating inflation. The Sensex rose over 300 points to regain 34,000 mark while Nifty raced to 10,484 at day's high.
10 Updates From Today's Stock Markets:
- The rupee rebounded to 64.81 from Thursday's three-month lows as the broad dollar rally took a pause today.
- "US bond yields have fallen and so sentiment is higher," said Anita Gandhi, whole time director, Arihant Capital Markets. "Price correction has happened to a large extent in pharma, so market is looking at some value buying."
- MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1 percent. U.S. benchmark 10-year note yields were last yielding 2.929 percent, after rising to a four-year high of 2.957 percent on Wednesday.
- Back in the domestic markets, gains were led by banking, pharma and metal stocks. The Nifty Pharma index rose as much as 2.8 per cent in its biggest intraday percentage gain since February 8.
- It had declined about 8 per cent since the start of the year, as of Thursday's close.
- Banks also gained, with HDFC Bank and ICICI Bank among the biggest contributors to the rise.
- Federal Bank climbed over 5.2 per cent after the bank on Thursday approved buying a stake in financial services company Equirus Capital.
- Global financial markets have fluctuated wildly this month as investors fretted about how fast the US central bank might raise rates in the wake of data showing a pick-up in US inflation. That in turn has stoked anxiety that many central banks will start to tighten policy in a hit to earnings, which have boomed thanks to a synchronized uptick in global growth.
- St Louis Fed President James Bullard tried to tamp down of expectations of four rate hikes in 2018, instead of the widely anticipated three increases, saying on Thursday policymakers need to be careful not to increase rates too quickly because that could slow the economy. That was enough to send US shares rallying.
- The Fed started tightening its ultra-loose policy at the end of 2015 after keeping rates on hold for almost a decade. It raised interest rates three times in 2017 and is likely to tighten again in March. (With Agency Inputs)
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