Sensex, Nifty hit records on dovish US Fed comments – Times of India
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MUMBAI: Strong buying in RIL and financial stocks helped the sensex rally by 765 points on Monday to settle at 56,890, its highest ever close, as global markets cheered a relatively dovish commentary from US Fed chairman Jerome Powell, made on Friday evening. On the NSE, the Nifty too rallied strongly to inch closer to the17,000-point level as it added 226 points to end at a record level of 16,931.
Sentiment was also boosted as the Indian rupee strengthened by another 42 paise to close at 73.27 to a dollar. According to a report by CARE Ratings, the comments by Powell at the Jackson Hole conference were taken positively by the market. At the annual symposium last week, the Fed chief said it could move away from pumping money into the economy by the end of the year, but raising rates would take some time. This boosted the markets, CARE report said.
The report said less bond buying (popularly called quantitative easing, or QE) means fewer funds to circulate to emerging markets like India, which could be a worry once the magnitude of QE starts to come down. The spread of the Delta variant is a matter of concern for market players.
On Monday, net FPI buying was a little over Rs 1,200 crore. Among the index stocks, Bharti Airtel rose over 4% after the company announced on Sunday a Rs 21,000-crore fund-raising.
The rally also added about Rs 3.5 lakh crore to investors’ wealth with BSE’s mcap now at almost Rs 250 lakh crore, or about $3.4 trillion.
Sentiment was also boosted as the Indian rupee strengthened by another 42 paise to close at 73.27 to a dollar. According to a report by CARE Ratings, the comments by Powell at the Jackson Hole conference were taken positively by the market. At the annual symposium last week, the Fed chief said it could move away from pumping money into the economy by the end of the year, but raising rates would take some time. This boosted the markets, CARE report said.
The report said less bond buying (popularly called quantitative easing, or QE) means fewer funds to circulate to emerging markets like India, which could be a worry once the magnitude of QE starts to come down. The spread of the Delta variant is a matter of concern for market players.
On Monday, net FPI buying was a little over Rs 1,200 crore. Among the index stocks, Bharti Airtel rose over 4% after the company announced on Sunday a Rs 21,000-crore fund-raising.
The rally also added about Rs 3.5 lakh crore to investors’ wealth with BSE’s mcap now at almost Rs 250 lakh crore, or about $3.4 trillion.
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