Stock Market: Sensex Zooms 556 Points, Nifty Tops 18,250. Bajaj Finance, HDFC Top Gainers

Stock update: On the 30-share Sensex platform, Bajaj Finance, HDFC twins, Bajaj Finserv, Asian Paints, SBI emerged winners

The two key equity benchmarks, Sensex and Nifty, on Thursday closed in the green, ending nearly 1 per cent higher. The domestic indices started on a jittery note after the US Federal Reserve hiked interest rates by another 25 bps. However, soon the indices steadied and moved from strength-to-strength on the back of strong corporate earnings and renewed FII buying.

The S&P BSE Sensex from a low of 61,120, rallied to a high of 61,798 backed by strong in gains in index heavyweights HDFC twins and Reliance Industries. The BSE benchmark ended 556 points stronger at calendar year’s high at 61,749. On the other hand, the NSE Nifty 50 touched a high of 18,267, before settling with a solid 166-point gain at 18,256.

On the 30-share Sensex platform, Bajaj Finance, HDFC twins, Bajaj Finserv, Asian Paints, SBI emerged winners. On the flipside, IndusInd Bank, Nestle, Tata Motors, ITC, PowerGrid, Wipro were among the losers.

In the broader markets, the BSE Midcap and Smallcap indices were up 0.8 per cent each. The breadth too was extremely positive, with nearly two advancing shares for every declining stock on the BSE.

Sectorwise, the BSE Bankex advanced 0.9 per cent. The Metal, Healthcare, and Consumer Durables indices were up over 0.5 per cent each.

In the previous session on Wednesday, the BSE Sensex was ended 161 points lower at 61,193, after having hit a low at 61,024. On the other hand, the NSE Nifty settled with a loss of 58 points at 18,090.

In Asian markets, Shanghai and Hong Kong settled in the green, while Seoul ended lower. Equity markets in Europe were trading lower. The US markets had ended in the negative territory on Wednesday.

The US Federal Reserve reinforced its fight against high inflation on Wednesday by raising its key interest rate by a quarter percentage point to the highest level in 16 years. But the Fed also signalled that it may now pause its streak of 10 rate hikes, which have made borrowing for consumers and businesses steadily more expensive.

"Following a widely expected rate hike by the Fed and consistent foreign support, the domestic equities resumed its bullish momentum, driven by gains across major sectors. However, the US market faced losses as the Fed reiterated concerns over elevated inflation despite softening its language on future rate hikes. Signs of returning contagion fears in regional US banks also weighed on the global market mood," said Vinod Nair, head of research, Geojit Financial Services.

Foreign Institutional Investors (FIIs) were net buyers on Wednesday as they bought equities worth Rs 1,338 crore, according to exchange data.

Global oil benchmark Brent crude gained 1.18 per cent to $73.15 per barrel.

Meanwhile, the rupee edged up by 2 paise to settle at 81.78 (provisional) against the US dollar in a range-bound trade on Thursday, tracking the weakness of the American currency in the overseas market.

Forex traders said significant foreign fund inflows and crude oil prices trading below $75 a barrel also supported the local unit. At the interbank foreign exchange market, the local unit opened higher at 81.68 against the US currency but later pared some of the gains to close at 81.78 (provisional), registering a gain of 2 paise over its previous close.

During the session, the rupee touched a high of 81.65 and a low of 81.84 against the dollar. On Wednesday, the rupee closed at 81.80 against the US currency.