The S&P BSE Sensex opened marginally higher at 33,140.40 with a gain of 4.22 points or 0.01 per cent on Thursday after the US Federal Reserve hiked key interest rates by 25 basis points.
The broader Nifty50 opened above the psychologically crucial level of 10,150 at 10,165.65 with a gain of 10.40 points or 0.10 per cent higher. Within 20 minutes of the trading session, the market surged with the Sensex gaining over 100 points and the Nifty50 inching towards the 10,200 level.
The US Fed, in its first meeting under Chairman Jerome Powell has kept the expected number of rate hikes for 2018 the same at three. Since markets were afraid that the Fed may raise this expected number of rate hike this year to four, they should be relieved, said experts. In overnight trade, the US markets closed lower.
Here are five things you need to know about the trading in domestic markets today:
1)The top five gainers at 9.22 am in the 30-share Sensex pack were Sun Pharma (up 1.76 per cent), ONGC (up 1.67 per cent), Tata Motors (up 1.17 per cent), Larsen and Toubro (up 0.53 per cent), and Reliance Industries (up 0.50 per cent).
2)The top five laggards were Wipro (down 1.08 per cent), Bharti Airtel (down 0.86 per cent), NTPC (down 0.76 per cent), Coal India (down 0.55 per cent), and State Bank of India (down 0.44 per cent).
3)”The market is going to be range bound considering the year ending 31st march is due, and the way that market has not broken the psychological level of 10,000, immediate bounce back and the spike is observed. There has been a strong foundation built up near 10,000 level. Hence right now watch on market will be sell on rise for traders and for investors it is a good buying opportunity at all the deeper levels,” said Ritesh Ashar, Chief Strategy Officer, KIFS Trade Capital.
4)”An unchanged path of Fed hike for this year is a relief, as three hikes is already factored by the markets. Importantly Mr Powell mentioned in his speech that he would be more guided by the actual movement of inflation and changes in unemployment in the coming months. With Fed hike behind us, the markets would now watch how Donald Trump’s tariff agenda plays out,” said Raghvendra Nath, Managing Director, Ladderup Wealth Management.
5)On Wednesday, the Sensex closed at 33136.18 while the Nifty50 settled at 10155.25.>