Domestic equities rallied in morning trade after after minutes from US Fed suggested that a rate hike is possible in December. The Sensex surged over 150 points tracking positive trend seen in other Asian markets.
What brought relief to market participants across the globe was the Fed’s indication that further hikes will be gradual. Minutes of the European Central Bank’s last policy meeting are also due later Thursday and will likely reinforce expectations of further easing in December, said a Reuters report.
The Nifty reclaimed its crucial psychological level of 7,800, supported by gains in IT, auto, banks, capital goods, realty, and metal stocks.
The broader markets also gained strength with the BSE Midcap and Smallcap indices rising 0.5 percent and 0.8 percent, respectively. The market breadth too was positive as about 1316 shares have advanced against 446 declining shares on the BSE.
Index heavyweights like ICICI Bank, Infosys, HDFC Bank, HDFC, Reliance Industries, ITC and L&T climbed higher, up 0.7-1.4 per cent. Auto stocks were also in demand as Maruti Suzuki, M&M, Bajaj Auto and Hero Motocorp gained 1-2 per cent after Hero said retail sales crossed record 10 lakh units in the festive season, up 11 per cent year-on-year.
Dr Reddy’s Labs topped selling list, down 4.6 per cent as the drug major is caught in a probe concerning possible violation of federal security laws. Lundin Law PC has announced that it is investigating claims against Dr Reddy’s Laboratories concerning possible violations of federal securities laws.
Most Asian markets traded higher on Thursday morning. Japan’s Nikkei surged by 1.41 per cent while South Korea’s Kospi was up 0.9 per cent. Hong Kong’s Hang Seng index traded higher by 1.3 per cent. China’s Shanghai Composite was up 0.07 per cent.
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