Fed lowers rate hike fears; Sensex leaps 517 points

Indian markets staged a resounding comeback on Thursday following frantic buying across the board as well as aggressive short-covering with the benchmark index Sensex rallying by 517 points to close at 26,231.19. After recent brutal sell-off, the reversal was fuelled by buoyant overseas sentiment on the back of easing rate hike fears and also some stability in Chinse equities, the epicentre of recent financial market tremors.

Financial markets across Asia and Europe witnessed a relief rally tracking a strong closing on Wall Street - its biggest <g data-gr-id="23">single day</g> gain in nearly four years bolstered by upbeat <g data-gr-id="24">maco</g> data. 

Moreover, dovish comments from the key Federal Reserve official that an imminent interest rate hike “seems less compelling” than it was a few weeks ago against the backdrop of global turmoil also 

brightened up the market mood. 

China’s ongoing deep economic crisis and currency devaluation amid global growth worries predominantly triggered one of the biggest global sell-offs in equities since the financial crisis 2008. 

The relief rally was spearheaded by consumer durable, realty, healthcare, oil&gas, metal, fmcg, financials, capital goods, power and technology conters.

After a robust opening, <g data-gr-id="22">bourses</g> maintained its strong throughout the session and <g data-gr-id="21">mananged</g> 

hold its crucial 26,000 mark till the end session of trade. 

Being the expiry day of August F&O series, rolling over short option position by traders also supported the <g data-gr-id="25">upmove</g>. The 30-share <g data-gr-id="26">sensex</g> opened firmly higher 26,137.03 and hovered between 26,302.77 and 25,943.75 before concluding at 26,231.19, showing a handsome gain of 516.53, or 2.01 per cent. <g data-gr-id="27">Similarly</g> the broader Nifty also jumped by 157.10, or 2.03 per cent to end at 7,948.95.