D-Street indices rise over 1% on global rebound after BOJ’s dovish talk
global equity markets saw a relief rally following the Bank of Japan's assurance that it will not increase interest rates when the markets are unstable.
NSE's Nifty rose 304.95 points, or 1.27%, to close at 24,297, whereas BSE's Sensex rose 874.94 points, or 1.11%, to end at 79,468.
Bank of Japan's deputy governor Shinichi Uchida said on Wednesday that given the sharp volatility in domestic and overseas financial markets, it would be necessary for the Japanese central bank to maintain current levels of interest rates for the time being. The move led to some weakening of the yen against the dollar. The strengthening of the yen following the rate hike by Japan's central bank last week was a key trigger for the selloff in the markets earlier this week as it led to the unwinding of trades that required the currency to remain weak.
Japan's benchmark Nikkei 225 gained 1.2% on Wednesday, South Korea rose 1.8%, Taiwan jumped 3.9%, Hang Seng moved up 1.5% and China ended marginally higher.
«Wednesday's gains looked more like a relief rally as we believe the markets could see some more weakness in the coming days,» said Sriram Velayudhan, senior vice president, IIFL Securities. «If global markets remain positive for the second day, the Nifty could go up to 24,450 levels,» Velayudhan said if the Nifty falls to 23,500, it could even decline to 23,000 levels.
The pan-Europe index Stoxx 600 ended up 1.74%.
At home, Nifty Midcap 150 gained 2.2% and Nifty Smallcap 250 also rose 2.4% at close. Nifty's India volatility index,
