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Sensex Hits Record High After Fed Hints Slowdown In Rate Hikes

At Close, the benchmark 30-share Sensex hit its record high, ending 1.24 per cent up or 762 points to close at 62,272.68. The Nifty50 too ended 1.19 per cent higher or 216 points up to close at 18,484.10, its 52-week high

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Indian equity benchmarks hit their all-time high on Thursday as investors digested the latest Federal Open Market Committee (FOMC) minutes which hinted that the rate hike cycle may be finally be slowing down. 

The buying was also led by short covering by traders, as today was the last day of the current month's derivatives expiry series.

At Close, the benchmark 30-share Sensex hit its record high, ending 1.24 per cent up or 762 points to close at 62,272.68. The Nifty50 too ended 1.19 per cent higher or 216 points up to close at 18,484.10, its 52-week high.

On the Nifty, Apollo Hospitals, HDFC Life, BPCL, Infosys and Tata Consumer Products were among the top gainers while, Cipla, Coal India, Kotak Mahindra Bank, Tata Motors, and Bajaj Finance were the top losers.

All other sectoral indices ended in green with IT and oil & gas up 1-2 per cent.

Minutes from Fed’s November meeting showed that a substantial majority of officials agreed that it would be appropriate to slow the pace of rate hikes.

“Investors wound up their short positions on the expiry day, triggered by US Fed minutes indicating a moderate pace of rate hikes going ahead that eventually propelled benchmark indices Sensex & Nifty to new all-time highs. Other positive catalysts such as the WTI crude oil prices staying sluggish and the falling US Dollar index and yields improved the risk appetite of investors leading to a broad-based buying,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

Asian markets, Japan’s Nikkei 225 advanced 0.95 per cent, and South Korea’s Kospi surged 0.96 per cent, while China’s Shanghai Composite declined 0.25 per cent. 

US markets also closed in the green. Dow Jones Industrial Average rose 1.08 per cent, S&P 500 surged 0.59 per cent, and Nasdaq Composite advanced 0.99 per cent.  



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