Sensex up for 4th day, soars 309 points post Fed rate hike

Mumbai :Brushing aside worries over the Fed rate hike, the benchmark Sensex today rose for the fourth straight session by gaining over 309 points to end at over a two-week high of 25,803.78 on a flurry of buying activity and a firm trend overseas.

The NSE Nifty too reclaimed the 7,800-mark as the market had already priced in the US Fed move. The rupee was jumpy, up 23 paise at 66.50 (intra-day) against the dollar, which kept the mood upbeat.

Global markets ruled firm after the US Fed, as expected, hiked rates by 0.25 per cent, a hint that the economy is strengthening, which influenced sentiment and buying activity gathered pace, brokers said.

In its longest winning-run this month so far, the BSE Sensex took off on a positive note and advanced further to hit the day’s high 25,831.31 before settling higher by 309.41 points, or 1.21 per cent at 25,803.78, a level last seen on December 3.

Intra-day, it slipped into the negative zone briefly as participants locked in gains amid lingering uncertainty over the passage of the key GST Bill. The gauge had gained about 450 points in the previous three sessions.

The broader NSE Nifty recaptured the 7,800-mark by surging 93.45 points, or 1.21 per cent, at 7,844.35 after shuttling between 7,852.90 and 7,737.55. Tata Steel was the best performer on the BSE Sensex, up 4.76 per cent, as Vedanta Ltd and Hindalco too gained.

Out of the 30-share Sensex pack, 25 ended higher. Meanwhile, Fitch Ratings said India is not immune to
potential market jitters on account of interest rate hike by the US Fed, but favourable economic growth outlook makes it attractive for foreign investors. Other prominent gainers included RIL, Bajaj Auto, M&M, Sun Pharma and Hero MotoCorp.

Sector-wise, the BSE metal index gained the most by surging 2.46 per cent, followed by power 1.44 per cent, healthcare 1.39 per cent and auto 1.33 per cent.

In step with the trend, the small-cap index rose 1.72 per cent and mid-cap 1.56 per cent. Meanwhile, foreign investors sold shares worth Rs 503.22 crore yesterday, showed provisional data.