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Stock markets cheer US Fed decision to hold rates; Rupee strengthens

Domestic benchmark index BSE Sensex, which soared over 350 points in the early trade, closed 265.71 points up at 28,773.13.

By: | New Delhi | Published: September 22, 2016 4:35 PM
Sensex, Nifty, BSE, NSE The US Federal Reserve decision to keep interest rates unchanged cheered global equity markets on Thursday.

The US Federal Reserve decision to keep interest rates unchanged cheered global equity markets on Thursday. Domestic benchmark index BSE Sensex, which soared over 350 points in the early trade, closed 265.71 points up at 28,773.13. On similar lines, NSE Nifty 50 index also closed 90.30 points up at 8867.45. Among the 51-components in the Nifty index, 38 stocks ended the day in green with Aurobindo Pharma surging the most — 6 per cent, followed by Hindalco (up 3.51 per cent), Bank of Baroda (up 3.13 per cent), IndusInd Bank (up 2.87 per cent) and State Bank of India (up 2.71 per cent).

On the other hand, Tech Mahindra, Axis Bank, Lupin, TCS and Coal India slipped by 1.44 per cent, 1.40 per cent, 1.27 per cent, 1.22 per cent and 1.18 per cent, respectively.

Barring the BSE IT index (down 0.36 per cent) and BSE TECk index (down 0.12 per cent), rest of the sectoral indices ended the day in positive terrain. The BSE Oil & Gas, Bankex, Auto, Capital Goods and Power index climbed 1.51 per cent, 1.49 per cent, 1.44 per cent, 1.37 per cent and 1.36 per cent, respectively. Stronger rupee put some pressure on domestic software companies in Thursday’s trade. The local currency was trading around 28 paise higher at 66.74 in the last leg of trade.

Vinod Nair, head of research, Geojit BNP Paribas Financial Services said, “Market praised the Fed’s decision as the global bond yield reverted and rupee strengthened. Additionally, due to a neutral statement, the market believe that the risk for December 2016 rate hike is roughly balanced adding positive sentiment in the market.”

In a scrip specific development, ICICI Bank gained over 2 per cent after the IPO of ICICI Prudential Life Insurance company got overwhelming response from investors and subscribed over 10 times. Godrej Properties also closed 1.33 per cent higher after the real estate company acquired a 12-acre land parcel in Bengaluru to develop a housing project.

Other Asian markets also ended on firm note. Shanghai and Hang Seng closed higher by 0.54 per cent and 0.38 per cent at 3042.31 and 23759.80, respectively.

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