Nifty Rises 130 Points To Above 18,100 Level On Improved Risk Sentiment

Indian equity benchmarks rose to over nine-month highs on Tuesday but ended just below those levels as investors hope for cues from the Federal Reserve of easing their ultra-aggressive tone this week.

The NSE Nifty-50 index rose 133.20 points to end at 18,145.40, and the 30-share BSE Sensex index jumped 374.76 points to end at 61,121.35, extending their winning streak for the fourth straight session.

Both benchmarks had scaled to over nine-month highs earlier in the session before ending just below those levels, extending weekly gains for the third week.

The benchmark indices each gained more than 5 per cent in value last month as a result of positive corporate earnings reports and expectations that major central banks would adopt a less hawkish attitude.

“Nifty surpassing the 18,100-mark ended a near seven-month consolidation. This kind of positivity could be because we are discounting possibility of big rate hikes being halted,” Ajit Mishra, Vice President for Research at Religare Broking, told Reuters.

“The Fed’s policy meet and RBI’s comments will impact the performance of sensitive stocks. A favourable announcement would result in a further uptick in the rate-sensitive pack, which holds the key for Nifty to inch record highs,” he added.