Easing rate hike fears keep mkts in green

Mumbai: Benchmark stock indices Sensex and Nifty rebounded on Tuesday after two days of decline following buying in select metal and banking shares and a bullish trend in the US markets on easing rate hike worries.

The 30-share BSE Sensex climbed 275.62 points or 0.42 per cent to settle at 65,930.77 as its 18 components advanced while 12 declined. During the day, it jumped 427.21 points or 0.65 per cent to 66,082.36. The broader Nifty went up by 89.40 points or 0.45 per cent to 19,783.40. As many as 30 NSE shares gained, while 20 closed in the red.

Vinod Nair, head (research) at Geojit Financial Services said: “Today, the market exhibited positive momentum, with attention centred on the minutes of the latest Fed meeting. The declining inflation and the recent cooling job data in the US provide foundation for a Dovish comment from the Fed.”

The drop in bond yields and the dollar index suggests mounting speculation regarding the potential peak in the interest rate cycle. “This will attract funds to emerging markets.

The gain in the broad market was led by consumer durables and realty, thanks to a strong rebound in festive demand,” Nair added.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 645.72 crore on Monday, according to exchange data.