The National Stock Exchange Nifty closed at a record high – 69 points up at 9,153 –on Wednesday, while Bombay Stock Exchange Sensex rose 217 points during the day’s trading to end 188 points higher at 29,585. Nifty50 went beyond its previous record of 9,122 that it had hit on March 14, after the Bharatiya Janata Party’s sweeping win in Uttar Pradesh.
Thursday’s market performance was driven by the interest rate hike announcement made by the United States Federal Reserve the night before. Fitch Ratings believes that the US central bank’s decision “could mark the beginning of a significant shift in the global interest rate environment”.
Adani Ports and Tata Steel were the biggest gainers in morning trade, while shares of the Anil Ambani group of companies, including Reliance Infrastructure, Reliance Power, Reliance Capital and Reliance Defence and Engineering Ltd, rose between 1% and 3.5%. Bharti Airtel and Idea Cellular made losses in both indices.
The rupee also strengthened on Thursday, coming close to a 17-month high against the US dollar. The Indian currency opened at 65.39 per dollar and hit a high of 65.24 – this value was last seen on October 30, 2015.
Other Asian markets also performed well following the Fed rate hike. Hong Kong’s Hang Seng, Japan’s Nikkei and Shanghai’s SE Composite Index all made gains – Hang Seng climbed by nearly 1.5%, while Nikkei made a marginal improvement.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!