Sensex surges 517 points after Fed hints at delaying rate hike
The benchmark BSE Sensex on Thursday staged a strong comeback and jumped 517 points -- its biggest single-day jump in two weeks -- to reclaim the 26,000-mark on gains in healthcare and realty stocks after the US Fed said a case for rate hike in September seemed "less compelling".business Updated: Aug 27, 2015 17:36 IST
The benchmark BSE Sensex on Thursday staged a strong comeback and jumped 517 points -- its biggest single-day jump in two weeks -- to reclaim the 26,000-mark on gains in healthcare and realty stocks after the US Fed said a case for rate hike in September seemed "less compelling".
The broader NSE Nifty too surged by 157 points to reclaim the 7,900-mark. Traders said covering-up of short positions on expiry of August month series in the derivative contracts at the end of session also helped.
Globally, Asian markets ended higher following a overnight surge on the Wall Street. New York Fed president William Dudley on Wednesday said that the prospect of a September rate hike "seems less compelling" than it was only weeks ago.
The comments came in the backdrop of a massive two-day sell-off in global markets. Following bullish global cues, the 30-share Sensex scaled the day's high of 26,302.77, before ending at 26,231.19, a gain of 516.53 or 2.01% its biggest single-session gain since August 14.
In Wednesday's trade the gauge had lost 317.72 points. The rupee recovering against the American unit also boosted sentiment.
The 50-share NSE Nifty after regaining 7,900-level, further rose to a session's high of 7,963.60, before settling 157.10 points or 2.02 % higher at 7,948.95.
The recovery in Sensex was supported by gains in HDFC (8.41 %), Vedanta (6.55 %), Tata Steel (4.80 %), Lupin (4.79 %), Cipla (3.95 %) and Sun Pharma (3.44 %). Among BSE sectoral indices, consumer durable gained the most by surging 5.11 %, followed by realty 4.02 %, healthcare 2.93 % and oil&gas 2.83 %.
he broader markets also performed well on buying by retail investors. The BSE small-cap and the mid-cap indices surged by 2.56 % and 2.49 %, respectively.
Shares in other Asian counties ended mostly in the green with Shanghai index rising up to 5.34 %. European equities were also higher in their early trade.
First Published: Aug 27, 2015 10:05 IST