[ad_1]
Domestic stock markets rose nearly 1 percent on Thursday, trailing Asian stock markets after the US Federal Reserve hinted at softening its stance on interest rate hikes.
On Wednesday, the US central bank raised its benchmark overnight interest rate by a quarter of a percentage point to a range of 5-5.25, as expected by financial markets, but in doing so softened the language of its policy statement saying it “expects more” would be needed. rate increases.
The 30-share BSE Sensex Index rose 556 points, or 0.91 percent, to close at 61,749.25 on Thursday. The broader Nifty share rose 166 points, or 0.92 percent, to close at 18,255.8 points.
Analysts said that gold prices rose to a record high of 61,412 rupees per 10 grams amid the possibility that the US Federal Reserve will pause to raise interest rates at its next meeting.
“After the widely expected interest rate hike by the Federal Reserve and continued foreign support, domestic stocks have resumed their upward momentum, driven by gains in key sectors,” said Vinod Nair, Head of Research, Financial Services at Geojit.
Head of Equity Research (Retail) at Kotak Securities Ltd., Shrikant Chauhan, said growth indicators in India are showing good signs of recovery and crude oil prices remain low, and investors are betting heavily on local stocks even as uncertainty persists over global economic growth.
Market participants said that the rally in gold prices was supported by a weaker dollar as investors bought gold as a safe haven amid rising recession risks in the US.
Positive sentiment among investors triggered a new wave of buying in bank stocks.
The “Bank Nifty” index rose 372.75 points, or 0.86 percent, to close at 43,685.45 points.
The biggest gainers in the Nifty 50 were Adani Enterprises, Bajaj Finance, HDFC Ltd, SBI Life Insurance and HDFC Bank while the biggest losers were IndusInd Bank, Nestle, Power Grid and ITC.
Foreign Portfolio Investors (FPI) have bought net Rs 1,414.73 crore of shares from the local market, according to BSE interim data.
Market participants said that the rally in gold prices was supported by a weaker dollar as investors bought gold as a safe haven amid rising recession risks in the US.
“The interest rate decision by the US Federal Reserve and the commentary that followed sent gold prices higher,” said Gnanasekar Thiagarajan, Co-Founder and CEO of Commtrendz Research.
In the financial year 2023, gold prices jumped by a whopping 8,000 rupees in the domestic markets from 52,000 rupees to 60,000 rupees per 10 gram, giving a yield of 15 percent.
“Going forward, gold still looks profitable in terms of ROI (return on investment) from a security perspective as inflation remains high globally and the interest cycle, which has not yet abated, will also provide the necessary push for gold to trade and bid,” he said. Jatin Trivedi, Vice President, LKP Securities VP (Research Analyst): “10-15% return in FY24.”
Gold prices are expected to reach Rs 66,000 – Rs 68,000 per 10 gram on base can performance before the end of FY24.
The 2 paise rupee closed at 81.78 against the US dollar on Thursday as compared to the previous close at 81.80.
[ad_2]
