Mumbai, Oct 23 (IANS) Hopes of the continuation of an European stimulus package and lower chances of a US rate hike buoyed Indian equity markets and led a barometer index to gain 170 points during the late afternoon session on Friday.
Initially, both the bellwether indices opened higher in line with their Asian peers. Hopes of the European Central Bank (ECB) extending its stimulus package cheered investors globally.
Investors’ confidence was also restored as the ECB did not hike interest rates during its monetary policy meet on Thursday.
After the ECB meet, equity market participants here have gathered that the US Federal Reserve will refrain from raising interest rates during its monetary policy meet.
However, both the bellwether indices ceded their initial gains as investors were seen reluctant to chase higher prices. Investors were seen to be anxious over the ongoing results season.
The wider 50-scrip Nifty of the National Stock Exchange made gains during the session under review. It was higher by 39 points or 0.47 percent at 8,290.45 points.
The barometer 30-scrip sensitive index (S&P Sensex) of the Bombay Stock Exchange, which opened at 27,466.64 points, was trading at 27,457.61 points (at 3.05 p.m.) — 170 points or 0.62 percent higher from its previous close at 27,287.66 points.
The Sensex has so far touched a high of 27,555.06 points and a low of 27,451.23 points during the intra-day trade.
The barometer index closed 19.17 points or 0.07 percent lower on Wednesday, the previous trading session.
Market observers’ cited that investors’ sentiments were upbeat after the ECB gave hints during its monetary policy meet on Thursday, that it might extend its stimulus and bond buying program.
“The markets got a boost from yesterday’s ECB decision to keep interest rates intact. The ECB also gave hints about extending its stimulus package, this buoyed investors sentiments,” Alex Mathews, head of research with Geojit BNP Paribas Financial Services, told IANS.
“Yesterday’s ECB decision on interest rates and positive cues on extending the stimulus package had a positive cascading impact on the Asian and Indian markets,” Mathews said.