Global stocks rise as Fed stands pat

Indian equities rose, the currency strengthened and government bond yields slid after the US Federal Reserve stood pat on interest rates, reflecting a relief rally that propped up markets the world over.

The Fed signalled that rates could be hiked in December, if the labour market showed signs of recovery, and that rate hikes were needed to keep the economy from overheating.

The benchmark Sensex rose 265 points or 0.9 per cent at 28,773, while the Nifty climbed 90 points or one per cent to close at 8,867. Japan’s Nikkei 225 gained 1.9 per cent and South Korea’s Kospi was up 0.7 per cent.  The European markets opened strongly, too, posting gains of between 1.5 and 2 per cent.

“Emerging markets will continue to remain beneficiaries of FPIs flows until the Fed starts raising rates,” said U R Bhat, director at Dalton Capital Advisors (India).

The Indian rupee strengthened 0.53 per cent on global dollar weakness to close at 66.67 a dollar, up from its previous close of 67.02 a dollar. Most of the Asian currencies gained on Thursday, led by South Korean won that rose 1.549 per cent in the day. The dollar index, which measures the greenback’s strength against global major currencies, fell 0.48 per cent to 95.204 after the US Fed decision.