The US indices climbed around a per cent higher following the Fed statement. This bullish response to a mildly hawkish Fed is surprising but indicative of the strong bullish undercurrent, said an analyst.
“The Evergrande crisis appears to be receding as of now. This bull market has been easily climbing all walls of worries surprising even diehard bulls. Now, we don’t know how long the party will go on,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
How are bluechips doing
After opening in the green, benchmark indices jumped further higher. At 9.27 am, BSE flagship Sensex was up 471 points, or 0.80 per cent, to 59,398. NSE benchmark Nifty gained 133 points, or 0.76 per cent, to 17,688. Thanks to the rally, equity investors made Rs 2.07 lakh crore in just 15 minutes of trading.
“Nifty is witnessing a range-bound movement and it has sustained well above 17,400-450 levels. We believe this up move will extend till 17,650 level in the short term. On the downside, 17,200 is the immediate support in Nifty 50, followed by 16,900,” said Mohit Nigam, Head – PMS, Hem Securities.
In the 50-share pack Nifty, Coal India was the biggest gainer, up 2.78 per cent. Tata Motors, Axis Bank, Tata Steel, Hindalco, SBI, HDFC Bank, Adani Ports and Reliance Industries were among other gainers.
Tech Mahindra was the top loser in the pack, down 0.26 per cent. Titan, Asian Paints and TCS were among those that traded in the red.
FACTORS DRIVING MARKETS
Good news
Evergrande crisis: One of the units of Evergrande said that it had “resolved” a coupon payment on an onshore bond. Concerns also eased somewhat when the People’s Bank of China injected 90 billion yuan ($13.9 billion) into the banking system.
Bad news
Fed meet: In its policy statement on Wednesday, the US central bank said it could start paring bond purchases as soon as November and that half of the Fed officials were ready to raise interest rates next year in response to inflation.
Dollar rise: The dollar rose after the Fed Chair’s remarks hitting a month-high of 93.526 against a basket of currencies particularly gaining against the euro and yen, but paused for breath in Asian hours.
Broader markets
Broader market indices were trading higher, outperforming their headline peers in morning trade. Nifty Smallcap was up 1.11 per cent while Nifty Midcap advanced 1.14 per cent. Broadest index on NSE, Nifty 500, was up 0.79 per cent.
Welspun India, Kalpataru Power, KEI Industries, Godrej Properties, Zee Entertainment and Indian Hotels were gainers from the space while Torrent Power, Balkrishna Industries, Page Industries, Kajaria Ceramics, Strides Pharma and Just Dial were under selling pressure.
Global markets
The Hong Kong benchmark rose 1.6 per cent, boosting MSCI’s broadest index of Asia-Pacific shares outside Japan, which gained 0.64 per cent. Chinese blue chips gained 0.74 per cent, Australia’s benchmark rose 1.04 per cent, and Korea’s Kospi fell 0.6 per cent after returning from a three-day break to catch up with global falls earlier in the week.
US stock futures, the S&P 500 e-minis, were up 0.31 per cent.
