Sensex rises 489 points on Fed rate cut hint; Nifty ends above 11,800

Softening US bond yields boost risk appetite

The Indian benchmark indices rallied on Thursday following dovish statements by the Federal Reserve. The US central bank left interest rates unchanged on Wednesday, but indicated it would not hesitate to cut rates to boost the economy, amid growing uncertainties.

The Sensex ended at 39,601, with a gain of 489 points or 1.25 per cent, the most since June 3. The Nifty closed at 11,831, after rising 140 points or 1.2 per cent. The rupee ended at 69.44, compared to the previous day’s close of 69.7. Oil prices also firmed up, while gold prices climbed to their five-year highs.

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