Indian stocks shrug off US Fed hike; Sensex soars 1115 points

Mumbai (Maharashtra): Shrugging off the first interest rate hike by the US Federal Reserve in over three years, the Indian equities markets key indices, Sensex and Nifty, surged by nearly 2 per cent on Thursday led by a strong buying support in infra and financial stocks.

The benchmark Sensex started the day on a bullish note at 57,620.28 points. Buying support got stronger later in the day. At around 12 noon, the 30 stock S&P BSE Sensex was trading at 57,932.54 points, which is 1115.89 points or 1.96 per cent higher from its previous day’s close at 56,816.65 points.

This is the second consecutive day of a strong rally in the Indian stock markets. The Sensex had gained 1039.80 points or 1.86 per cent on Wednesday.

The broader Nifty 50 of the National Stock Exchange was trading 318.40 points or 1.88 per cent higher at 17,293.75 points against its previous day’s close at 16,975.35 points. The Nifty had gained 312.35 points or 1.87 per cent on Wednesday.

The Indian equities markets have rallied despite the rake hike by the US Fed. The US Federal Reserve on Wednesday hiked the interest rate by 25 basis points or 0.25 per cent. This is the first rate hike by the US Fed since December 2018. Analysts said the 25 basis points hike in interest rate by the US Fed was largely priced in by the market.

HDFC soared 4.88 per cent to Rs 2400. Titan surged 4.48 per cent to Rs 2705.25. Asian Paints jumped 3.56 per cent to Rs 3149.80. Kotak Bank surged 3.37 per cent to Rs 1820.70. Tata Steel jumped 2.96 per cent to Rs 1302.70.

There was across the board buying support. Only two of the 30 scrips that are part of the benchmark Sensex were trading in the red. HCL Technology was down 0.60 per cent and Power Grid Corporation was trading 0.10 per cent down.