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Financial and IT shares give Sensex and Nifty a big lift as global markets await Fed rate decision

Financial and IT shares give Sensex and Nifty a big lift as global markets await Fed rate decision

2 Min(s) Read

By Sandeep Singh   IST (Published)


The Sensex and the Nifty50 built on to opening gains to rise as much as 1.2 percent in early deals, boosted by financial, IT, oil & gas and auto shares. Globally, investors awaited the outcome of a two-day policy meeting that begins later in the day.

Indian equity benchmarks jumped amid buying across sectors on Tuesday, tracking an optimistic mood across global markets ahead of a key rate decision by major central banks this week. Financial, IT, oil & gas and auto stocks were the biggest boosts on Dalal Street in early deals.
Both headline indices rose as much as 1.2 percent within the first few minutes of trade. The Sensex jumped 692.6 points to touch 59,833.8 at the strongest level of the day so far, and the Nifty50 climbed to as high as 17,833.4, up 211.1 points from its previous close.
The Fed is widely expected to zero down on a 75 basis-point hike in the key lending rate following two-day deliberations that begin later on Tuesday.
All of the 50 Nifty constituents started the day in the green. Adani Ports, Tech Mahindra, Infosys, IndusInd Bank and Tata Motors were the top gainers.
ICICI Bank, Axis Bank, Bajaj Finserv, Tata Steel and Larsen & Toubro were also among the blue-chip stocks that rose the most.
Reliance, ICICI Bank, Infosys, Larsen & Toubro and HDFC Bank were the biggest contributors to the rise in both main indices.
All sectoral indices on NSE rose at the open, with IT and banking spaces being among the top gainers.
"A major break from the current levels is unlikely for the next two days. A big correction after the Fed decision is possible only if the rate hike is of 100 bps... Indian market continues to show resilience despite global challenges," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. 
There is value emerging in IT for long-term investors, he said.
Overall market breadth favoured the bulls, as 2,349 stocks rose and 682 fell on BSE.
Can Fin Homes shares tumbled, a day after the housing finance company's MD and CEO Girish Kousgi resigned.
Meanwhile, the rupee edged higher against the US dollar.
Global markets
Equities in other Asian markets rose, following overnight gains on Wall Street, with MSCI's broadest index of Asia Pacific shares outside Japan quoting 0.6 percent higher at the last count. Japan's Nikkei 225 was up 0.4 percent, as the market returned to trade after a long weekend.
S&P 500 futures edged up 0.1 percent. On Monday, the S&P 500 rose 0.7 percent, the Dow Jones 0.6 percent and the Nasdaq Composite 0.8 percent.
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