After a Relief Rally Markets Halve Gains, Nifty Slips Below 8,000

The markets pare gains after Sensex rallied almost 500 points intraday.

Markets cheered the Fed’s decision to hold rates. (Photo: Reuters)

Fed Cheer

• Sensex ends 200 points higher, after rallying 500 points intraday
  Nifty closes below 8,000 after scaling 8,050 in afternoon trade
• Bank stocks lead the rally; intraday the Bank Nifty hit a one-month high
• Axis Bank, ICICI Bank, HDFC Bank, SBI are among the top gainers
• Rupee extends gains to hit a 3-week high

The Indian equity market cheered US Federal Reserve’s decision to hold interest rates, but pared almost half of its gains by the end of trade. The Sensex closed 200 points higher after gaining 500 points intraday. The Nifty fell below the 8,000 mark after scaling 8,050 during the day.

The Sensex almost halved its gains. (Courtesy: BSE)

Bank stocks led the rally. Intraday the Bank Nifty hit a one-month high but scaled back some of its gains. Axis Bank, HDFC Bank, SBI were among the top gainers on the Bank Nifty.

Apart from bank stocks, ONGC, Sun Pharma, Wipro, Reliance Industries were also among the top gainers on the Sensex. Metal stocks like Vedanta, Tata Steel and FMCG heavyweights like ITC and HUL dragged the index lower.

Banks rallied but metals and FMCG dragged the Sensex lower. (Courtesy: BSE)

The rupee hit a three-week high of 65.99 against the dollar. The currency opened at a two-week high in early trade.

Asian shares outside Japan mostly rebounded earlier today, recovering from early losses after the Federal Reserve cited concerns about global economic growth in its decision to hold off on its first rate hike in nearly a decade.

The US markets closed mixed on global growth concerns, and increasing uncertainty on when the Fed would actually raise rates.