Indian Stock Markets Rally 1% on US Fed's Rate Decision and Positive Global Cues

2 Nov 2023 , 01:22 PM

Equity benchmark indices rebounded by nearly 1% in early trade on Thursday after a two-day decline, in response to a global market rally following the US Federal Reserve’s decision to keep rates unchanged.

At the time of writing, the Sensex was trading at Rs 63,977, marking a 0.61% increase from the previous day’s close, while the Nifty was trading at Rs 19,106, representing a 0.62% increase from the previous day’s close.

Notable gainers among Sensex firms included IndusInd Bank, Kotak Mahindra Bank, Axis Bank, Titan, Infosys, Bajaj Finance, State Bank of India, Tata Consultancy Services, ICICI Bank, and HDFC Bank. Tata Steel was the sole laggard.

In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong were trading positively. US markets closed with gains on Wednesday.

The Fed’s decision to maintain rates, coupled with Fed Chief Jerome Powell’s comments on well-anchored long-term inflation expectations, led to a positive market response. This suggested that the Fed may not raise rates again in the current rate-hiking cycle, resulting in a decline in bond yields.

Global oil benchmark Brent crude saw a 0.99% increase, reaching USD 85.47 per barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,816.91 crore on Wednesday, according to exchange data.

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