Sensex extends record run; Fed says policy tightening pace will be gradual

With Monday's rally, the Indian markets cemented their position as the best-performing Asian market.

The stock markets got a fresh shot in the arm with the US Federal Reserve reaffirming it will continue to follow a path of gradual tightening. 

The benchmark Sensex rose 442 points, or 1.2 per cent — most since May 31 — to close at 38,694, a new high. The Nifty index gained 135 points, or 1.2 per cent, to end at 11,692, just 2.6 per cent shy of the  12,000-mark.

The risk-on sentiment was triggered by dovish commentary by Fed Chairman Jerome Powell, who signalled that there was little need to tighten the policy aggressively. The comments helped offset concerns around