NEW DELHI: Equity indices continued its upward trend for the fourth straight session on Thursday with the benchmark BSE Sensex surging over 450 points amid strong global cues and fresh gains in the domestic currency against the US dollar. The 30-share Sensex traded in green throughout the session and gained 453 points or 1.27 per cent to finish at 36,170, while the broader NSE Nifty rose 130 points or 1.21 per cent to close at 10,859.
On the BSE index, Bajaj Auto, Kotak Mahindra Bank, Mahindra Mahindra, Vedanta and IndusInd Bank were among the major gainers, rising as much as 4.33 per cent. On NSE, apart from Nifty IT, all other sub-indices finished in green, gaining as much as 1.92 per cent.
Dovish comments from US Federal Reserve chairman Jerome Powell proved to be the driving factor for the indices which boosted investor sentiment. Brokers said that the market mood remained buoyant, bolstered by foreign institutional investors’ buying coupled with a firm global trend after Powell suggested that the central bank may be nearing an end to its three-year rate tightening cycle, boosting interest in riskier assets.
“There is a good deal of positivity in the market due to expectations of a reduced pace of a rate hike by the US,” said Anand James, chief market strategist at Geojit Financial Services.
The strong gains in the domestic currency also supported the markets. The rupee jumped 74 paise and strengthened past the 70 per dollar mark to hit 69.88, a three-month high level (in intra-day trade) amid sustained selling of the greenback by exporters and easing crude oil prices.
Rupee extends gains, below 70 per dollar mark for first time in 3 months
Investors are also awaiting the release of gross domestic product (GDP) data for the September quarter on Friday.
(With inputs from agencies)