Sensex, Nifty reclaim 200-DMA; may gain another 2.5% each

If the BSE Sensex and the NSE Nifty 50 cross their respective 100-DMAs, the benchmarks can easily rally another 2.50 per cent each.

World markets rallied sharply in trade on Thursday taking cues from the US counterparts, after the US Federal Reserve hiked interest rate by 25 basis points on expected lines at Wednesday night. This was the first rate hike since 2018, a gap of more than 3 years as policy makers battled Covid pandemic related economic slowdown during that period.

However, record high inflation (4-decade high) coupled with the Ukraine war related worries warranted a rate hike. The US Fed said it would continue with the policy tightening for the rest of the year.

Overnight, Dow Jones