Sensex creates history. Why it soared 900 points today
Indian stock market benchmark Sensex hit a new high today on the monthly expiry day of derivate (F&O) contracts , driven by a rally in IT companies. Global markets were also higher after minutes from Fed’s latest meeting suggested that the US central bank may slow the pace of interest rate hikes. The Sensex rose over 700 points to a new high of 62,315, breaking previous record of 62,245, hit on October 19, 2021.
The broader Nifty50 index soared over 18,500.
Minutes from the Fed’s November rate-setting meeting showed that a “substantial majority” of policymakers agreed it would “likely soon be appropriate” to slow the pace of rate hikes.
The rupee also got a boost amid broader dollar weakness.
“The US dollar fell after the release of FOMC meeting minutes on Wednesday. As expected, it showed the majority of the policymakers were with the view of slower rate hikes as the Fed’s aggressive stance is impacting the economic growth.US Dollar index closed near day low of 106.03 in the previous session, a fall by more than 1%. Although the minutes indicated the end of jumbo rate hikes, the policy makers were uncertain on when the end point of the rate hikes,” said Ravindra Rao of Kotak Securities Ltd.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.