Sensex, Nifty Rally As US Rate Worries Fade
(RTTNews) - Indian shares rallied on Wednesday, drawing support from strong global cues, a weaker dollar and a decline in U.S. Treasury yields.
Global sentiment was upbeat as softer-than-expected U.S. CPI data boosted bets the Federal Reserve will forgo any more interest rate hikes and indeed start cutting rates by May. Markets currently price in a 50 basis-point rate cut by July.
Stable oil prices on signs tensions in the Middle East could be easing and positive retail and wholesale inflation data on the domestic front also boosted investor sentiment.
The benchmark S&P BSE Sensex jumped 742.06 points, or 1.14 percent, to 65,675.93 while the broader NSE Nifty index settled 231.90 points, or 1.19 percent, higher at 19,675.45.
The broader market also rose sharply, with the mid-cap and small-cap indexes on the BSE closing up 0.9 percent and 1.1 percent, respectively.
Automakers topped the gainers list, with Eicher Motors rallying 5.3 percent and Tata Motors adding 2.8 percent.
Infosys, Hindalco and Tech Mahindra rose 3-4 percent.
Bajaj Finance led losses to close about 2 percent lower while IndusInd Bank and Power Grid Corp both lost around 1 percent.
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