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November 24, 2020
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Sensex soars 266 pts as dovish Fed lifts global equities

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Hero MotoCorp was the top gainer in the Sensex pack, spurting 4.46 per cent. IndusInd Bank, Tata Motors, Vedanta, SBI, M&M, Sun Pharma, Tata Steel, HDFC and HDFC Bank too rose up to 3.63 per cent.

The BSE Sensex reversed recent losses to end 266 points higher on Thursday, largely in line with global markets which rallied after US Federal Reserve Chair Jerome Powell bolstered expectations of a rate cut.

After rising as much as 335 points during the day, the 30-share index settled 266.07 points or 0.69 per cent higher at 38,823.11.

 

Similarly, the broader NSE Nifty climbed 84 points, or 0.73 per cent, to 11,582.90.

World markets rose after US Federal Reserve chairman Jerome Powell told a congressional committee on Wednesday that the central bank is ready to “act as appropriate” to boost growth amid multiple headwinds.

Investors are wagering on a rate cut by the Fed as early as this month.

Hero MotoCorp was the top gainer in the Sensex pack, spurting 4.46 per cent. IndusInd Bank, Tata Motors, Vedanta, SBI, M&M, Sun Pharma, Tata Steel, HDFC and HDFC Bank too rose up to 3.63 per cent.

On the other hand, Tech Mahindra, Yes Bank, TCS, L&T, Axis Bank and NTPC lost up to 1.27 per cent.

“Dovish commentary from Fed chairman Jerome Powell rekindled rate cut hopes, leading to rebound in equities world over.

“Indian markets were no exception with more than half a percent gain in Nifty as well as midcap index.

“The rate cuts will improve the liquidity situation globally and eventually will find its way to emerging markets which enhances investment sentiments.

“Overhang of budget is gradually fading and focus is shifting towards global events and earnings,” said Sunil Sharma, chief investment officer, Sanctum Wealth Management.

Sectorally, BSE auto, metal, telecom, realty, utilities and finance indices rose up to 1.84 per cent.

However, capital goods and consumer durables lost up to 0.69 per cent.

The broader BSE midcap and smallcap indices followed the benchmarks, rising up to 0.56 per cent.

Photograph: Danish Siddiqui/Reuters

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