Mumbai: Domestic stocks rallied on Thursday, shrugging off the first Fed rate hike since 2018, amid progress in Russia-Ukraine peace talks. The US Fed hiked interest rate by 25 basis points overnight, which analysts said was largely priced in by the market. The US central bank hinted at six rate hikes in 2022 but Chair Jerome Powell said the ‘economy is very strong to handle tighter policy and the probability of a recession is “not particularly elevated.”
Domestic equities have been helped this week by falling oil prices that have allayed inflation fears, progress in Russia-Ukraine talks, and more relaxations to COVID-19 curbs such as reopening of schools amid an expanded vaccination drive for children.
The positive commentary on the US economy triggered a rally in US stocks overnight and Asian markets were seen catching up earlier today.
The BSE Sensex hit 57,819 and was up over 1,000 points in morning trade. Nifty50 was quoting at 17,259, up 284 points or 1.67 percent.
(SMIT SONI)
