Equity Markets Surge on Global Relief Rally Following Fed's Pause on Interest Rates

3 Nov 2023 , 01:15 PM

On November 3, equity markets witnessed significant gains in the afternoon session, riding a global relief rally after the US Federal Reserve’s decision to maintain interest rates, fueling optimism that rates have possibly reached their peak. A boost in stock-specific buying was further propelled by robust corporate results.

At 1 PM, the Sensex surged by 368.85 points or 0.58% to reach 64,449.75, while the Nifty climbed 121.20 points or 0.63% to stand at 19,254.50. Market breadth was positive, with 2155 shares advancing, 980 shares declining, and 102 remaining unchanged.

All sectors displayed upward movement, with realty, services, auto, oil & gas, consumer discretionary, energy, financial services, and consumer durables leading the charge. Notably, IT stocks soared by 1%, building on the momentum from the previous day following the Fed’s decision, which was less hawkish than expected. Given that IT companies earn a substantial portion of their revenue from the US, this news buoyed investor sentiment.

The auto sector also saw a rise of nearly 1%, primarily driven by Tata Motors, which surged over 2% after posting robust quarterly earnings. Tata Motors stood out among the top gainers in the Nifty 50 index.