Sensex Gains 80 Points as India Digests Fed Hike
Indian benchmarks recovered early losses after the US Federal Reserve raised rates by 25 basis points. The Nifty 50 index closed the gap-down open to trade above 23,250 levels.
The Sensex index added 80.27 points to reach 74,416.72. This represented a 0.11 percent gain against the previous close of 74,336.45. The Nifty 50 index rose 33.25 points to 23,250.85. Both indices opened with a gap-down before stabilizing in the early session.
The US Federal Reserve implemented a 25 basis point rate hike on Wednesday. The central bank signaled that another increase could occur later this year. Indian markets absorbed this news without significant sell-offs in the opening minutes. Analysts noted that crude oil prices cooling provided some relief to the domestic economy.
Sectoral splits emerge in morning trade
Broad market indices traded in positive territory during the morning session. Most sectoral indices showed gains in the early hours. The IT, banking, and media sectors traded in negative zones. Information technology stocks faced pressure following the global tech sell-off.
Top gainers included BEL, Eternal, and Bajaj Finance. Tata Steel and Power Grid also contributed to the index rise. Top losers included ONGC, HCL Tech, and Titan. Infosys and TCS were among the stocks dragging down the Nifty index.
Rupee strengthens against the US dollar
The Indian rupee started the day on a strong note. It breached the 96.00 mark per US dollar for the first time since late July. The currency opened at 95.99 against the greenback. This was a slight improvement from the previous close of 95.96.
Crude prices soften to aid India
Brent crude oil traded at approximately 105.80 US dollars per barrel. WTI crude traded around 102.35 US dollars per barrel. These levels provided some relief to India's import bill. Market participants are watching the Bank of England decision for further clues. Analysts expect the BoE to hold its bank rate at 3.75 percent.
