Markets welcome Fed decision; Nifty ends above 8,100

The 30-share Sensex closed at 27,112 up by 481 points whereas the Nifty ended higher by 139 points at 8,115

Markets extended gains for the second consecutive trading session and closed on a spectacular note after the US Federal Reserve decided to keep US interest rates near zero for a "considerable time”.

Further, Chinese President Xi Jinping pledged to invest $20 billion in India in the next five years.  The two sides signed 12 agreements, including a 5-year commerce and trade pact. 

Meanwhile, the provisional data released by the stock exchanges on Wednesday showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 136.08 crore on that day.

The 30-share Sensex closed at 27,112 up by 481 points after touching an intra-day high of 27,092 whereas the 50- share Nifty ended higher by 139 points at 8,115 levels after touching an intra-day high of 8,110. Sensex and Nifty gained the most since June 2, 2014.  

Devang Mehta, Sr. VP & Head - Equity Advisory, Anand Rathi Financial Services says, “The structural bull run in the Indian equities resumed once again after a brief round of consolidation & correction. Markets came back roaring as the major global hangover in terms of short term sentiment dictator was out of the way. Participants were truly excited by the prospects of huge investments by China in India’s infrastructure, railway & manufacturing projects. We have been continuously maintaining that one need to keep the faith & all major dips should be utilized as an opportunity to buy & accumulate good quality stocks.”

INDIAN RUPEE

The rupee is trading at 61.01 vs previous close of 60.92/93 at the Interbank Foreign Exchange market due to dollar's gains against other currencies overseas.

Forex dealers said besides strengthening of dollar against other currencies in global market after the US Fed stating it would keep its easy-money policy, increased demand for the American unit from importers and a weak opening in the domestic equity market put pressure on the rupee.

GLOBAL MARKETS

The US Federal Reserve on Wednesday renewed a pledge to keep interest rates near zero for a "considerable time" and repeated concerns over the labour market, standing firm against calls to overhaul its policy statement.

Many economists and traders had expected the central bank to alter the rate guidance it has provided since March, given generally improving data on the economy's performance.

Japan's Nikkei share average closed at a new eight-month high and posted the biggest daily rise in two weeks on Thursday, with a weak yen giving exporters a boost despite disappointing trade data which showed the softer currency is not significantly buoying sales.

The Nikkei share average ended 1.1% higher at 16,067.57 points, the highest closing level since early January. It was the biggest daily percentage gain in two weeks.

The broader Topix rose 1.0% to 1,317.91, and the JPX-Nikkei Index 400 gained 1.1% to 11,946.88.

The dollar hit a six-year high against the yen on the US Federal Reserve outlook.

SECTORS & STOCKS

BSE Realty index zoomed by nearly 5% followed by counters like Consumer Durables, Auto, Capital Goods, Oil & Gas and power, all gaining between 2-3%. Infact, all the 12 BSE sectoral indices ended in positive zone.

Shares of real estate companies rallied by up to 11% on the bourses on reports that the Real Estate (Regulation and Development) Bill, 2013 is likely to come up for consideration in Rajya Sabha in the forthcoming Winter Session.

Unitech, Housing Development and Infrastructure (HDIL), Indiabulls Real Estate, Oberoi Realty, DLF, D B Realty and Anant Raj Industries were up 4-11% on the National Stock Exchange (NSE).

The main gainers on the Sensex were Hero Moto, HDFC, Tata Motors, L&T, BHEL, Dr Reddy’s Labs and Bajaj Auto.

Hero MotoCorp moved higher by nearly 6%, extending the previous day’s 2% gain on BSE, after the company said it would set up an ultra-modern manufacturing facility with a capacity to produce 1.8 million units annually in Andhra Pradesh.

Sun Pharmaceutical Industries ended higher by nearly 2% after the drug maker said it has entered into a licensing agreement with Merck & Co Inc for investigational therapeutic antibody candidate, Tildrakizumab to be used for treatment of plaque psoriasis, a skin ailment.

Among other shares, Snowman Logistics was locked in upper circuit of 5% at Rs 90.15 on BSE, extending its over 80% rally since listing on the bourses on September 12, 2014.

Zee Entertainment Enterprises moved higher by nearly 6% ahead of its entry into the 50-share CNX Nifty index from tomorrow.

Among broader markets, BSE Midcap and Smallcap indices surged between 2-3%.

The market breadth in BSE ended firm with 2,237 shares advancing and 824 shares declining.