By Malvika Gurung
Investing.com -- Indian equity benchmark indices made a gap-up opening on Wednesday, mirroring an overnight rally on Wall Street, while Asian shares advanced too on Thursday. As the day proceeded, the indices traded firmer.
The US Fed on Wednesday announced a 50 basis points rate hike, meeting investors’ expectations, and shrugged off concerns of a 75 basis-point rate hike in the near future, stating that the 50 bps increase would be considered in a couple of upcoming meetings.
Investors on Dalal Street added Rs 3.19 lakh crore to their wealth on Thursday, and all sectoral indices listed under the Nifty basket, except Nifty Realty trading higher, portraying a sharp reversal of yesterday’s market crash. Nifty Bank gained 1.52%.
Federal Reserve's biggest rate hike in 22 years, of 50 bps on Wednesday to tame soaring inflation, while dissipating fears of a 75 bps rate hike in the upcoming meetings. The key takeaway from the Fed is that they are not ready to consider larger rate hikes, said a US market analyst.
The Fed’s clarification led to a sharp relief rally in US markets, with the Indian counter mirroring the same.
Besides, allaying aggressive rate hike expectations led to a rise in buying of rate-sensitive stocks like financial and IT scrips. Infosys (NS: INFY ), Tech Mahindra (NS: TEML ), SBI (NS: SBI ) and ICICI Bank (NS: ICBK ), all rose above 2% at the time of writing.
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