Domestic stock market benchmarks the Nifty 50 and the Sensex ended with significant gains on Thursday, November 2, following positive global cues after the US Fed maintained a pause on interest rates, fuelling expectations that the US central bank is done with rate hikes.
Last night, the Fed maintained the policy rate within the 5.25-5.50 per cent range. Experts pointed out that although Chair Jerome Powell didn’t completely dismiss the possibility of another rate hike, market observers perceived that he wasn’t as hawkish as they might have anticipated.
“Fed left open the door for additional rate hikes even though he didn’t defend the Sept Dot plot which implies one more hike in December. We continue to think that the Fed is done hiking,” said Madhavi Arora, lead economist at Emkay Global Financial Services.
Also Read: Fed policy outcome: Fed keeps rates steady. What does it mean? Experts explain
Following the Fed’s announcement, the US 10-year Treasury yield eased to its lowest in more than two weeks to 4.7196 per cent. The dollar also softened against its peers, giving a boost to the equity markets.
After the Fed outcome, the next important data for the market is non-farm payroll data which is expected on Friday.
“The next big focal point for the market is non-farm payrolls data on Friday, which analysts expect to show the economy added 180,000 jobs in October, slowing from 336,000 increase the previous month. It will come after mixed data showed strong job openings and slower-than-expected growth in private payrolls,” reported Reuters.
Nifty 50 today opened at 19,120 against the previous close of 18,989.15 and touched its intraday high and low of 19,175.25 and 19,064.15 respectively. Nifty 50 closed the day at 19,133.25, up 144 points, or 0.76 per cent.
Sensex today opened at 64,033.40 against the previous close of 63,591.33 and touched its intraday high and low of 64,202.64 and 64,202.64 respectively. The Sensex closed the day with a gain of 490 points, or 0.77 per cent, at 64,080.90.
Mid and smallcaps clocked bigger gains. The BSE Midcap index jumped 1.20 per cent while the Smallcap index rose 0.97 per cent.
The overall market capitalisation of BSE-listed companies rose to nearly ₹313.2 lakh crore from about ₹310.2 lakh crore in the previous session, making investors richer by about ₹3 lakh crore in a single session.
As many as 170 stocks, including IndusInd Bank, Colgate Palmolive (India), Vodafone Idea, Macrotech Developers, Oberoi Realty and Persistent Systems, hit their fresh 52-week highs in intraday trade on BSE.
Meanwhile, crude oil prices jumped over a per cent as the US Fed policy decision boosted market sentiment. Brent Crude traded 1.29 per cent higher at the $85.72 per barrel mark around 4 pm.
The rupee rose 4 paise to 83.25 per dollar, Bloomberg data showed.
Top Nifty 50 gainers today
Shares of Britannia Industries (up 2.97 per cent), Hindalco Industries (up 2.68 per cent) and IndusInd Bank (up 2.10 per cent) ended as the top gainers in the Nifty 50 index.
As many as 42 stocks ended with gains in the Nifty 50 index.
Top Nifty 50 losers today
Shares of Hero MotoCorp (down 1.03 per cent), Bajaj Auto (down 0.47 per cent) and HDFC Life Insurance Company (down 0.17 per cent) ended as the top losers in the Nifty 50 index.
Sectoral indices today
All sectoral indices ended higher today, with Nifty Realty jumping 2.52 per cent, followed by Nifty PSU Bank (up 1.50 per cent) and Nifty Metal index (up 1.40 per cent).
Nifty Oil & Gas (up 1.15 per cent), Healthcare (up 0.97 per cent) and Consumer Durables (up 0.96 per cent) also ended significantly higher.
Nifty Bank closed 0.74 per cent higher at 43,017.20.
Experts’ views on markets
“A pause with dovish commentary from the Fed led to a rebound in the global and domestic market sentiment. Further, the fall in US bond yields indicates a prolonged pause in interest rate hikes. And the domestic macros are favourable with positive auto numbers, a surge in GST collection, good factory data and better than estimated Q2 quarter earnings,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The US Federal Reserve’s decision to keep policy rates unchanged fuelled a global rally and helped benchmark indices reverse their two-day losing streak. Across-the-board buying propelled Sensex to close above the 64,000 mark, as investors cheered the US Fed decision in the backdrop of rising global uncertainty further worsened by the ongoing conflict in West Asia, higher inflation and strong FII fund outflows,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Technical views on Nifty 50
Aditya Gaggar, Director of Progressive Shares observed that on the daily chart, Nifty 50 made a Doji candlestick pattern which represents indecisiveness between the bulls and bears, and at present, it is standing in the middle of the range (18,800-19250), awaiting a clear breakout on either side.
Kunal Shah, Senior Technical and Derivative analyst at LKP Securities pointed out that the Nifty formed a Doji candle on the daily chart, reflecting a state of indecision as a battle between the bulls and the bears unfolds.
Shah said downside support for the Nifty is in the 19,000-18,900 range, with visible fresh put writing for the upcoming weekly expiry.
“Immediate resistance is situated at the 19,200 level, and a breakthrough at this point could trigger fresh short covering, potentially propelling the index towards 19,300-19,350,” said Shah.
Read all market-related news here
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
Download the Mint app and read premium stories
Log in to our website to save your bookmarks. It’ll just take a moment.
You are just one step away from creating your watchlist!
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
Your session has expired, please login again.
You are now subscribed to our newsletters. In case you can’t find any email from our side, please check the spam folder.
This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp