HomeMarket NewsStocks NewsClosing Bell: Sensex, Nifty surge after Fed's in-line rate hike, upbeat commentary; VIX at 1-month low

Closing Bell: Sensex, Nifty surge after Fed's in-line rate hike, upbeat commentary; VIX at 1-month low

The Sensex and the Nifty50 held on to strong gains throughout the session as an in-line rate hike and upbeat commentary by the Fed boosted global markets. Gains across most sectors pushed the headline indices higher.

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By Sandeep Singh  March 17, 2022, 3:42:48 PM IST (Published)

Closing Bell: Sensex, Nifty surge after Fed's in-line rate hike, upbeat commentary; VIX at 1-month low
Indian equity benchmarks surged on Thursday amid a broad-based rally, as the Fed's first rate hike in more than three years and upbeat commentary on the world's largest economy boosted global shares. Financial, oil & gas, consumer and auto shares led the gains on Dalal Street.


Both headline indices held on to strong gains throughout the session before closing up 1.8 percent. The Sensex rose 1,047.3 points to end at 57,863.9 and the Nifty50 settled at 17,287.1, up 311.7 points from its previous close. (ALSO READ: Nifty crosses 200 DMA)

Both Sensex and Nifty50 closed well above the flatline for a second straight day. Investors' grew richer by Rs 8.7 lakh crore during this period as the market capitalisation of BSE-listed companies increased to Rs 260.4 lakh crore, exchange data shows.

HDFC, Titan (one-month high), JSW Steel, SBI Life, Reliance Industries, Kotak Mahindra Bank and Eicher Motors -- ending between 3.3 percent and 5.4 percent higher -- were the top gainers among blue-chip stocks.

Only four stocks in the Nifty50 basket slid below the flatline: Infosys (down 1.1 percent), Cipla (0.9 percent), Indian Oil (0.5 percent) and HCL Tech (0.4 percent).

Reliance Industries and the HDFC twins were the biggest contributors to gains in both indices.

The India VIX -- known in market parlance as the fear index -- dropped 6.3 percent to a one month closing low of 22.6.

"Global markets welcomed the Fed's decision to hike rates by 25 bps as expected, though the central bank's projection of another six hikes during the year is hawkish. FIIs turning net buyers after a long wait was also a relief for the domestic market," said Vinod Nair, Head of Research at Geojit Financial Services.

The US central bank projected similar hikes at each of its six remaining meetings this year.

Fed Chair Jerome Powell said there are signs the US economy is strong, and said central bank could start to reduce the size of holdings on its balance sheet as soon as May.



The Nifty Realty was the top gainer among NSE's sectoral indices, followed by the financial services gauge -- both up around three percent.

The Nifty IT was the only sectoral gauge failing to hold on to the green as investors awaited Accenture's quarterly results due later in the day. TCS rose 0.5 percent and Infosys fell 1.1 percent.

ONGC shares rose 1.7 percent as crude oil once again entered three digits. Benchmark Brent crude was up five percent at $103 a barrel at the last count, though well below a 14-year high of $139 touched this month.

Strength was visible across broader markets as well, with the Nifty Midcap 100 finishing the day 1.4 percent higher. Its smallcap counterpart rose 1.2 percent.

In the midcap and smallcap segments, Angel One, KEI Industries, IFB Industries and Greaves Cotton -- rising around 9-14 percent -- were the top gainers. On the other hand, Future Retail, Oil India, BSE and Sequent Scientific -- declining around 3-9 percent -- were the top losers.

Overall market breadth remained in favour of the bulls, with an advance-decline ratio of 2:1 as 1,366 shares rose on NSE and 706 fell.

The market will remain shut on Friday for Holi.

Global markets

European shares began the day on a positive note following strong gains across Asia on the widely anticipated US rate hike and optimism about Russia-Ukraine peace talks. The pan-European Stoxx 600 index was up 0.7 percent in early deals.

S&P 500 futures, however, were down 0.3 percent.

Technical view

"The Nifty50's sustainability above 17,350 will pave the way for the 17,500-17,700 zone, and in case a decline, the 16,800-17,000 zone will act as a cushion," said Ajit Mishra, VP-Research at Religare Broking.

He suggests participants to focus on the sectors and stocks showing resilience and align their positions accordingly.

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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