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Relief rally takes Sensex 500 pts higher, Nifty above 15,800; Bajaj Fin, RIL jump 2% – Economic Times

NEW DELHI: Benchmark indices saw a relief rally on Thursday morning after four days of straight fall, thanks to a dovish commentary by US Fed Chair Jerome Powell overnight.

While hiking the interest rate by 75 basis points overnight, which was all likely in the wake of a 40-year high inflation print, Powell said the US policymakers’ move was “an unusually large one” and that he did not expect “moves of this size to be common”.

“Risky assets got their groove back after the Fed restored confidence that they are serious about fighting inflation but that a steady stream of supersized hikes would be unlikely,” said Edward Moya, senior market analyst at The Americas OANDA.

By 9.22 am, the BSE Sensex topped the 53,000 market and was trading 539 points or 1.03 per cent higher at 53,080.31. Nifty50 was trading at 15,840.95, up 149 points or 1.03 per cent. Midcap and smallcap indices rose up to 1.14 per cent.

Among Sensex stocks

rose 1.84 per cent to Rs 2,644.10. advanced 1.70 per cent to Rs 5,578.10. ., and gained 1.6 per cent, 1.27 per cent and 1.19 per cent, respectively.
fell 0.8 per cent to Rs 220.40. , and declined up to 0.7 per cent.

Most Asian markets, except for Hong Kong, were trading up to 1 per cent higher.

Moya of The Americas OANDA, however, believes the Fed needs tighter financial conditions and for the economy to cool and that supersized hikes should be expected over the next few meetings.

In an interview earlier this week, Investment guru Jim Rogers had said that the market may perceive a 75 basis point-Fed rate hike as good news for a while, as the sharp rate hike could make it believe the worst is over, but “the worst is not over yet.”