Janet gives Sensex 4-month high boost of 481 points
20 Sept 2014 5:02 AM IST
Bolstered by the status quo stance taken by the US Federal Reserve on interest rates amid the promise given by the Chinese President to invest $100 billion in India, the Sensex jumped by 481 points — its biggest point-wise gain in four months —to end at an almost one-week high of 27,112.21. The Nifty too gained 139 points to a one-week high of 8,114.75.
In a statement, US Federal Reserve Chairwoman Janet Yellen late on Wednesday night in its policy setting meeting promised to keep the interest rates near zero for a ‘considerable time’ after its bonds buying programme comes to an end in October, giving immediate relief to the emerging markets, including India as fears of immediate capital outflows have subsided.
Though outcome of Federal Open Market Committee (FOMC) two-day meeting was on expected lines, analysts see an interest rate hike in June 2015.
In a three-day visit to India, Chinese President Xi Jinping on Thursday vowed to invest in railway, infrastructure and manufacturing projects. The President promised to invest a whopping $100 billion over five years, resulting equities to turn bullish. China and India are likely to sign five MoUs on developing India's railway infrastructure.
Buying was sturdy as all 12 sectoral indices closed with gains between 0.58 per cent and 4.65 per cent with realty, consumer durable, capital goods, auto, power and banking were the pacesetters in the surge.
The benchmark S&P BSE 30-share Sensex resumed lower and touched a low of 26,503.08, but later bounced back with a vengeance in line with positive Asian trends to cross 27,000-mark at a high of 27,132.20 before settling at 1-1/2-week high of 27,112.21, revealing a steep rise of 480.92 points or 1.81 per cent. Previously, it had zoomed by 556.77 points or 2.42 per cent. Asian stocks gained in choppy trade.The US Fed in a statement announced a further $10 billion reduction in its monthly purchases, leaving the programme on course to be shuttered next month.
Key benchmark indices in China, Singapore, Taiwan and Japan rose by 0.02 per cent to 1.13 per cent, while indices in Hong Kong and South Korea fell by 0.72 per cent to 0.85 per cent.
European markets were also trading higher as indices in France, Germnay and UK moved up by 0.34 per cent to 0.60 per cent.
Jignesh Chaudhary, Head Of Research, Veracity Broking Services said,’ Local Indian equities continued to trade strong for the second day with the help of blue chip co. as global equities traded strong after the Fed reserve stated that rate hikes would not happen for a ‘considerable time’.
Blue chips like L&T, BHEL & Tata Motors rose up by almost 3 per cent during the day. Turning to domestic market, 28 scrips out of the 30-share sensex pack ended higher.
In a statement, US Federal Reserve Chairwoman Janet Yellen late on Wednesday night in its policy setting meeting promised to keep the interest rates near zero for a ‘considerable time’ after its bonds buying programme comes to an end in October, giving immediate relief to the emerging markets, including India as fears of immediate capital outflows have subsided.
Though outcome of Federal Open Market Committee (FOMC) two-day meeting was on expected lines, analysts see an interest rate hike in June 2015.
In a three-day visit to India, Chinese President Xi Jinping on Thursday vowed to invest in railway, infrastructure and manufacturing projects. The President promised to invest a whopping $100 billion over five years, resulting equities to turn bullish. China and India are likely to sign five MoUs on developing India's railway infrastructure.
Buying was sturdy as all 12 sectoral indices closed with gains between 0.58 per cent and 4.65 per cent with realty, consumer durable, capital goods, auto, power and banking were the pacesetters in the surge.
The benchmark S&P BSE 30-share Sensex resumed lower and touched a low of 26,503.08, but later bounced back with a vengeance in line with positive Asian trends to cross 27,000-mark at a high of 27,132.20 before settling at 1-1/2-week high of 27,112.21, revealing a steep rise of 480.92 points or 1.81 per cent. Previously, it had zoomed by 556.77 points or 2.42 per cent. Asian stocks gained in choppy trade.The US Fed in a statement announced a further $10 billion reduction in its monthly purchases, leaving the programme on course to be shuttered next month.
Key benchmark indices in China, Singapore, Taiwan and Japan rose by 0.02 per cent to 1.13 per cent, while indices in Hong Kong and South Korea fell by 0.72 per cent to 0.85 per cent.
European markets were also trading higher as indices in France, Germnay and UK moved up by 0.34 per cent to 0.60 per cent.
Jignesh Chaudhary, Head Of Research, Veracity Broking Services said,’ Local Indian equities continued to trade strong for the second day with the help of blue chip co. as global equities traded strong after the Fed reserve stated that rate hikes would not happen for a ‘considerable time’.
Blue chips like L&T, BHEL & Tata Motors rose up by almost 3 per cent during the day. Turning to domestic market, 28 scrips out of the 30-share sensex pack ended higher.
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