In a strong recovery, the benchmark equity indices Sensex and Nifty bounced back nearly 1% on Thursday following a two-day decline, buoyed by a global market rally after the U.S. Federal Reserve opted to maintain interest rates.
The 30-share BSE Sensex surged by 489.57 points, or 0.77%, settling at 64,080.90. During the trading session, it rallied by 611.31 points, or 0.96%, reaching 64,202.64. Simultaneously, the Nifty climbed 144.10 points, or 0.76%, closing at 19,133.25.
Leading the gains among Sensex firms were IndusInd Bank, Tata Steel, Tata Motors, Sun Pharma, Infosys, Mahindra & Mahindra, NTPC, Bharti Airtel, HCL Technologies, and Axis Bank. However, Tech Mahindra and Bajaj Finance experienced declines.
The market rebound was attributed to a pause in interest rate hikes by the Federal Reserve, coupled with dovish commentary, which boosted both global and domestic market sentiment. Vinod Nair, Head of Research at Geojit Financial Services, highlighted the positive domestic factors, including robust auto sales, increased GST collection, favorable factory data, and Q2 earnings surpassing estimates.
In Asian markets, Seoul, Tokyo, and Hong Kong closed higher, while Shanghai saw a slight dip. European markets were trading positively, and the U.S. markets ended with gains on Wednesday.
Additionally, the global oil benchmark, Brent crude, surged by 1.67% to $86.12 a barrel. However, foreign institutional investors (FIIs) offloaded equities worth ₹1,816.91 crore on Wednesday, according to exchange data.
After a slight dip in the previous session, the BSE benchmark had declined by 283.60 points, or 0.44%, settling at 63,591.33, and the Nifty decreased by 90.45 points, or 0.47%, closing at 18,989.15.