Dovish Fed outlook buoys markets

Sensex up 309 points while Nifty adds 93 points

Mumbai: Indian markets moved ahead and rose for the fourth consecutive day on Thursday, brushing aside worries over the rate hike by the US Federal Reserve. Positive cues from global markets and increased buying activity improved the market sentiments.

Benchmark Sensex climbed by 309 points, or 1.21 per cent, to end the day at over a two-week high of 25,803.78 while the NSE Nifty surged forward by 93.45 points to close at 7,844.35 points, thereby reclaiming the 7,800 mark.

Global markets ruled firm after the US Fed, as expected, hiked rates by 0.25 per cent, a hint that the economy is strengthening, which influenced sentiment and buying activity gathered pace

In its longest winning-run this month so far, the BSE Sensex took off on a positive note and advanced further to hit the day’s high 25,831.31 before settling higher by 309.41 points at 25,803.78, a level last seen on December 3, 2015.

Intraday, it went into the red zone briefly as participants locked in gains amid lingering uncertainty over the passage of the key GST Bill. The index went up by about 450 points in the previous three sessions.

Tata Steel emerged as the best performer on the BSE Sensex, up 4.76 per cent, as Vedanta and Hindalco too gained. Out of the 30-share Sensex pack, 25 edged higher. Other prominent gainers included RIL, Bajaj Auto, M&M, Sun Pharma and Hero MotoCorp.

Sector-wise, the BSE metal index gained the most by surging 2.46 per cent, followed by power 1.44 per cent, healthcare 1.39 per cent and auto 1.33 per cent.

In step with the trend, the smallcap index rose 1.72 per cent and midcap 1.56 per cent. Meanwhile, foreign investors sold shares worth Rs 503.22 crore on Wednesday, showed provisional data.