Sensex Today: Indian equity markets surged on the monthly F&O expiry day as the US Federal Reserve suggested a slowdown in the rate hike cycle, after one more “unusually high rate hike”. Besides, the US Fed’s confidence about a strong labor market, and dismissal of recession lent muscle to the bulls.
The benchmark S&P BSE Sensex zoomed 1,098 points in the intra-day trade, before settling 1,041 points, or 1.87 per cent, higher at 56,858. The NSE Nifty50, on the other hand, reclaimed the 16,900-mark to end at 16,930, up 288 points or 1.73 per cent.
Tata Steel, Kotak Bank, IndusInd Bank, Nestle, Infosys, Asian Paints, and Tech M were the other outperformers, up between 3 per cent and 4.6 per cent.
On the downside, Bharti Airtel, Ultratech Cement, Dr Reddy’s Labs, Sun Pharma, and ITC were the only laggards, down up to 1.13 per cent.
In the broader markets, the Nifty MidCap and SmallCap indices added 0.8 per cent each. Sectorally, all the indices settled in the positive zone, led by The Nifty IT index (up 3 per cent), and the Nifty Financial Services index (2.5 per cent). The Nifty Healthcare index logged the most tepid gains, up 0.3 per cent.
“The market is responding to the possibility of a soft landing for the US and the global economy. In India, relentless FII selling had emboldened the bears to go short. The market surge that we are witnessing now is partly short covering and partly investment buying in segments that are doing well,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Bajaj Finance leaped 10.4 per cent on the bourses today after the consumer financier posted better-than-expected June quarter results. It’s sister firm Bajaj Finserv, too, jumped 10.2 per cent as its board approved 1:1 bonus issue and 1:5 stock split.
Among stocks, Biocon shed over 5 per cent despite posting a 71 per cent YoY increase in consolidated net profit to Rs 144 crore in Q1FY23.
Tata Motors slipped around 3 per cent after its Q1 consolidated loss widened more than expected to Rs 5,007 crore as compared to Rs 4,451 crore a year earlier.
Global Cues
Federal Reserve officials raised interest rates by 75 basis points for the second straight month, delivering the most aggressive tightening in more than a generation to curb surging inflation — but risking a sharp blow to the economy. Policymakers, facing the hottest price pressures in 40 years, lifted the target range for the federal funds rate on Wednesday to 2.25 per cent to 2.5 per cent. That takes the cumulative June-July increase to 150 basis points – the steepest rise since the price-fighting era of Paul Volcker in the early 1980s.
Asian shares made cautious gains on Thursday as investors scented a possible slowdown in the pace of U.S. rate hikes, lowering bond yields and restraining the dollar.As expected, the U.S. Federal Reserve raised rates 75 basis points to 2.25-2.5% but did note some softening in recent data.
Tokyo stocks opened higher on Thursday, extending rallies on Wall Street after the US Federal Reserve announced a large interest rate hike. The benchmark Nikkei 225 index was up 0.75 percent, or 209.14 points, at 27,924.89 in early trade, while the broader Topix index advanced 0.42 percent, or 8.24 points, to 1,953.99.
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