Lower chances of US rate hike boost markets; Sensex up 112 points

Mumbai, Oct 9 (IANS) Lower chances of a US rate hike this month cheered investor sentiments and propelled a barometer index of the Indian equity markets to a gain of 112 points or 0.42 percent during the post-noon trade session on Friday.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading in the green. It was up 30.85 points or 0.38 percent at 8,160.20 points.

The barometer 30-scrip sensitive index (S&P Sensex) of the Bombay Stock Exchange (BSE), which opened at 26,974.92 points, was trading at 26,957.58 points (1.15 p.m.) — 111.77 points or 0.42 percent up from its previous close at 26,845.81 points.

The Sensex had so far touched a high of 27,200.44 points and a low of 26,957.22 points in the intra-day trade.

The Sensex made intra-day gains a session after profit booking, coupled with weak global cues and caution over the upcoming quarterly results arrested its six-day upward streak.

The Indian equities’ barometer index closed 190 points or 0.70 percent down on Thursday.

Analysts said the markets made intra-day gains on the back of dovish FOMC (Federal Open Market Committee) minutes. The US Fed’s FOMC minutes which were released on Thursday indicated lower chances of a rate hike in October.

The FOMC minutes were of the September 16 meeting in which the US Fed decided not to hike lending rates.

The US Fed is slated to conduct its FOMC meet on October 27-28.

The FOMC minutes assumes significance as higher interest rates in the US are expected to lead away FPIs (Foreign Portfolio Investors) from emerging markets such as India.

“The markets rose on the back of dovish FOMC minutes which lowered the chances of an October rate hike there,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

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