Stock Market: Sensex Surges 600 Points; Nifty Around 19,165 On Strong Cues. Bank, IT Stocks Lead

Stock update: On the 30-share Sensex platform, IndusInd Bank, Kotak Bank, Axis Bank, Titan, Infosys, Airtel, SBI emerged early gainers. On the downside, only HUL and Tata Steel were the laggards

The two key equity benchmarks, Sensex and Nifty, on Thursday opened on a bullish note amid strong Asian cues. The domestic indices rebounded sharply as investor sentiment got a boost following a pause in rate hike by the US Fed. At 9.42 am, the S&P BSE Sensex soared 600 points to 64,190. On the other hand, the NSE Nifty50 was trading at 19,165, up 176 points.

On the 30-share Sensex platform, IndusInd Bank, Kotak Bank, Axis Bank, Titan, Infosys, Airtel, SBI emerged early gainers. On the downside, only HUL and Tata Steel were the laggards.

In the broader market, the BSE Midcap and Smallcap indices jumped nearly 1 per cent each.

Sectorally, all the indices are trading in the positive zone, with bank, realty, and Information Technology rose 1 per cent each.

In the global market, the US stocks rallied sharply after the US Fed left rates unchanged for the second straight time. The S&P 500 index was up 1 per cent, Nasdaq soared 1.6 per cent and Dow Jones gained 0.7 per cent each.

Markets in the Asia Pacific region too were seen holding buoyant gains. Nikkei and Hang Seng had rallied over 1 per cent each, while Kospi and Taiwan gained 1.7 per cent each.

In the previous session on Wednesday, the BSE Sensex dropped 284 points to 63,591, while the NSE Nifty 50 finished at 18,989, down 90 points.

"Even though the pause decision of the Fed was on expected lines, the commentary was not hawkish as the market feared. The Fed chief Jerome Powell’s comment that "despite elevated inflation, the longer-term inflation expectations remain well anchored" was taken by the market as a slightly dovish statement. The implication of this statement is that the Fed may not hike rates again in this rate hiking cycle. Consequently, the bond yields declined sharply. The benchmark 10-year bond yield declined 17 bps to 4.75 per cent, and the equity markets responded positively," V K Vijayakumar, chief investment strategist, Geojit Financial Services, said.

In Asia, Seoul, Tokyo, Shanghai, and Hong Kong were trading in the positive zone. On the other hand, the US markets ended with gains on Wednesday.

Global oil benchmark Brent crude jumped 0.99 per cent to $85.47 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,816.91 crore on Wednesday, according to exchange data.

Meanwhile, Indian rupee rose 9 paise to 83.19 against the US dollar in early trade on Thursday, tracking its Asian peers as risk-on sentiments prevailed in the market as the US Fed was a bit dovish in its policy meeting. The US Fed kept interest rates on hold, and its chairman looked content with the economy's soft landing. Following the decision, the dollar index softened, and the 10-year bond yield fell to 4.70.

At the interbank foreign exchange, the domestic unit opened at 83.23 against the dollar and then touched an early high of 83.19, registering a gain of 9 paise over its previous close. On Wednesday, the rupee settled at 83.28 against the US dollar. The local unit hit all-time low level of 83.35 against the American currency during intra-day.