New Delhi: Rising for the fourth straight session, the BSE Sensex on Thursday rallied for over 450 points to settle at 36,170, while the broader NSE Nifty jumped 129.85 points, or 1.21 per cent, to finish at 10,858.70.Also Read - Sensex Slumps 456 Points, NSE Nifty Down at 18,266
Meanwhile, the rupee jumped 74 paise to breach the 70 per dollar mark and touched 69.88 — a three-month high — in intra-day trade amid sustained selling of the greenback by exporters and easing crude oil prices. Also Read - Mehengai Ki Maar! Skyrocketing Fuel, Vegetable Prices Destroy Aam Aadmi's Budget | Check Rates Here
“With a significantly lower Brent and a stronger rupee, the equity market traded with absolute buoyancy, covering the broader markets as well,” said Joseph Thomas, Head Research, Emkay Wealth Management. Also Read - Sensex Hits Lifetime High of 61K; Nifty Posts Record Opening; Check Top Stocks
According to him, one key factor which has breathed new life into the markets is the statement from the Fed Chairman that US interest rates remain just below neutral.
“This was seen as a signal that the Fed is probably close to the end of the tightening cycle. Notably, this statement was in sharp contrast to the earlier statement around the last FOMC meeting that there was still a ‘long way’ for the Fed to tread before the right levels are attained,” he added.
Any ease in global trade tension after G20 meet this weekend will further boost global sentiment, analysts said.
Also, in a major relief to energy importers like India, oil prices slipped below the USD 60 per dollar mark as investors fretted over a supply glut.
The dollar weakened against some currencies overseas after US Federal Reserve Chairman Jerome Powell said that the central bank’s benchmark interest rate is likely near a “neutral level”.
At the Interbank Foreign Exchange (forex), the rupee opened on a firm footing at 70.15 against the US dollar. It then breached the crucial 70 per USD mark and rallied to the day’s high of 69.78 following dollar selling by exporters.
The local unit finally finished at 69.88, showing a gain of 77 paise over its previous close.
The last time the rupee closed below 70 was on August 24, when it had finished at 69.91.