Nifty reclaims Mt 20k on receding concerns over further US rate hikes
stock benchmarks rose more than 1% on Wednesday with the Nifty closing above 20,000 for the first time since September 13 as receding concerns over further rate hikes in the US revived risk-on sentiment. The softening of global crude prices and a reversal in foreign fund activity in November so far after two months of selling also improved investor mood.
The Nifty surged 206.90 points, or 1%, to close at 20,096.60.
The Sensex advanced 727.71 points, or 1.10%, to close at 66,901.91. Automobiles, banks and IT stocks were the top gainers with Axis Bank surging 3.9%, M&M rising 3.4% and Wipro moving up 2.3%.
Both indices have gained close to 5% in the past month.
"Market sentiments have improved after the Fed indicated that rates have peaked, and no further hike is likely," said Sidhartha Khemka, head of retail research, broking and distribution, Motilal Oswal.
«Foreign investors turning net buyers and liquidity flow in IPOs are also positive developments.» So far in November, foreign portfolio investors (FPIs) have bought stocks worth ₹4,687 crore after selling to the tune of an aggregate ₹39,000 crore in September and October.
Indices 0.6% Away from All-time Highs
Khemka said the bullish momentum in the Sensex and Nifty is likely to continue in the near term. Both indices are about 0.6% away from their all-time highs.
The rebound in the stock market came in the wake of the weakening of the dollar, a decline in US treasury yields and easing worries about geopolitical conflict.
Brent crude futures, which have fallen nearly 3% in the past month, stood at $82.84 per barrel on Wednesday. «Cooling off of crude oil prices and an expectation of rate cut by the Fed are some of the global factors that have boosted the markets
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