Stock markets jump in early trade after two days of fall, Rupee rises against dollar
The BSE Sensex and Nifty rose roughly 1% in early trade on Thursday. The US Fed maintained interest rates, and the rupee rose 9 paise against the dollar. US and Asian markets finished up well…
After two days of fall, equity benchmark indices rose about 1% in early trade on Thursday after global markets rallied and the US Fed kept rates unchanged. Early trade saw the 30-share BSE Sensex rise 593.8 points to 64,185.13. The Nifty rose 179.3 points to 19,168.45.
IndusInd Bank, Kotak Mahindra Bank, Axis Bank, Titan, Infosys, Bajaj Finance, State Bank of India, Tata Consultancy Services, ICICI Bank, and HDFC Bank gained the most among Sensex corporations. Tata Steel was the sole laggard.
US and Asian markets
In Asia, Seoul, Tokyo, Shanghai, and Hong Kong traded green. US markets rose Wednesday.
The Fed’s pause decision was expected, but the commentary wasn’t hawkish as the market feared. The market interpreted Fed chief Jerome Powell’s “despite elevated inflation, the longer-term inflation expectations remain well anchored” statement as dovish.
Brent crude rose 0.99% to USD 85.47 per barrel. According to exchange statistics, FIIs sold Rs 1,816.91 crore in stocks on Wednesday.
Indian rupee rises vs US dollar
The rupee rose 9 paise to 83.19 against the US dollar in early trade on Thursday, tracking its Asian peers as risk-on emotions prevailed after the US Fed appeared dovish. Forex traders said a weak US dollar offshore and good domestic equities bolstered the local unit in early trade.
The US Fed chairman was pleased with the economy’s soft landing and kept interest rates on hold. The dollar index plummeted and the 10-year bond yield fell to 4.70 after the decision. The domestic unit began at 83.23 against the dollar and reached an early high of 83.19, up 9 paise.
Conclusion
Global markets rose on Thursday after the US Federal Reserve maintained interest rates. Indian equities markets followed. IndusInd Bank, Kotak Mahindra Bank, Axis Bank, Titan, Infosys, Bajaj Finance, State Bank of India, Tata Consultancy Services, ICICI Bank, and HDFC Bank led the Sensex and Nifty advances of over 1% apiece.
Brent crude increased 0.99%, while Asian and US markets rose. As risk appetite increased, the rupee rose 9 paise against the US dollar, matching Asian rivals.
Investors should expect more gains in the following days due to bullish market mood. However, be cautious and invest in excellent stocks for the long term.
