Sensex increased by around 700 points
In early trading on Thursday, the BSE Sensex increased by 743.95 points, or 1.03 percent, to 72,845.64.
Top gainers, up 3%, are NTPC and IndusInd Bank.
The Fed’s decision to hold steady interest rates and avoid from sending a hawkish message has eliminated any doubt around it, according to V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The Fed chairman expressed confidence in the soft landing of the US economy and the likelihood of three rate reduction this year, saying that “inflation has eased substantially while the labor market has remained strong.”
The US indexes raced to all-time highs as the market responded. According to him, the favorable global environment would also benefit Indian markets.
Domestic institutional investors (DIIs) have been winning the tug of war against foreign institutional investors (FIIs) for a while now. If the FIIs keep selling, this tendency will continue, and as a result, they may slow down their sales and perhaps become purchasers. According to him, largecaps in banking, telecommunications, capital goods, and autos would benefit from this.
According to Deepak Jasani, Head of Retail Research at HDFC Securities, after the US Federal Reserve’s announcement that it will continue to reduce interest rates, Asian equities rebounded on Thursday, while gold and Japan’s Nikkei reached all-time highs. Investors in stocks celebrated the Fed’s decision to stick to its projected pace of rate decreases.
