Chennai: The two Indian stock markets – the BSE and the NSE – ended on higher note on Thursday and the trend is expected to continue, experts said.
“Following a widely expected rate hike by the Fed (US Federal Reserve) and consistent foreign support, the domestic equities resumed its bullish momentum, driven by gains across major sectors,” said Vinod Nair, Head of Research at Geojit Financial Services.
He said that the US market faced losses as the Fed reiterated concerns over elevated inflation despite softening its language on future rate hikes. Signs of returning contagion fears in regional US banks also weighed on the global market mood.
The Nifty of the NSE rose for the 7th out of the past 8 sessions to close at more than a four month high on May 4. At close, Nifty was up 0.92 per cent or 165.9 points at 18,255.8, said Deepak Jasani, Head, Retail Research, HDFC Securities.
Nifty built on its previous gains well on May 4. It is now headed for 18,319-18,432 band on the upside while 18,148 could provide support on the downside for the near term, he added.
According to Jasani, the Asian stock markets were mostly higher Thursday after the US Fed raised its benchmark lending rate by 25 basis points to cool inflation and said it wasn’t sure what may come next.
European stocks dropped at open as investors studied a series of earnings for clues on the state of the economy and prepared for a rates decision from the European Central Bank later Thursday, following the US Fed’s latest quarter-point hike, Jasani said.
At the BSE, the Sensex opened at 61,258.13 points, touched a high of 61,797.91 points and a low of 61,119.56 points. The Sensex closed at 61,749.25, gaining 555.25 points over the previous close.
(IANS)
