The market has opened higher after a sharp slide on Wednesday. The Sensex is up 165.64 points or 0.6% at 25648.16 and the Nifty is up 48.50 points or 0.6% at 7780.30. About 658 shares have advanced, 89 shares declined, and 24 shares are unchanged.
Hero MotoCorp, Maruti, ICICI Bank, Bajaj Auto and Vedanta are top gainers in the Sensex. Among the losers are GAIL and M&M.
The Indian rupee has opened higher in early trade. It has gained 19 paise at 66.10 per dollar versus 66.29 on Wednesday.
Mohan Shenoi, Kotak Mahindra Bank says minutes of the October FOMC meeting clearly indicate that Fed will commence the rate hiking cycle in December. Since the minutes were in-line with market expectations further dollar strength against major currencies was limited, he adds.
The dollar hit a seven-month peak against a currency basket after minutes of the last Fed policy meeting suggested that a December rate increase was on the cards. Asian equities opened higher after US markets reacted positively to the release of Federal Reserve's October meeting minutes that signaled a likely interest rate hike in December.
US markets all ended in positive territory, with the Nasdaq Composite outperforming to close 1.79% or 89.19 points higher. The Dow Jones Industrial Average closed 247.66 points or 1.42 percent higher while the S&P 500 finished 1.62% or 33.14 points up.
The Federal Open Market Committee's October minutes showed most members felt that economic conditions for a rate hike would be met by the next time the committee met in December.
This was despite continued volatility being seen across global markets as a result of geopolitical issues, dampened commodity prices and an economic slowdown in China.
Meanwhile, the rupee recovered by 12 paise to close at 66.18 per dollar on fresh selling of greenback by banks and exporters amid recovery in the equity market. Weakness of dollar in the overseas market also boosted the rupee value against the dollar, a forex dealer said. The Indian unit opened higher at 66.10 per dollar as against overnight level of 66.30 at the Interbank Foreign Exchange market and firmed up further to 66.04 on initial dollar selling.
However, it trimmed its early gains and dropped to 66.2350 per dollar before ending at 66.18, still showing a gain of 12 paise or 0.18 per cent. The rupee had lost 30 paise or 0.45 per cent in previous two days. The dollar index was trading lower by 0.35 per cent as against a basket of six currencies in the afternoon trade.
In overseas market, dollar edged down but stood close to a seven-month high in early Asian trading, getting a lift from Federal Reserve officials' comments as well as the central bank's latest meeting that hinted that an interest rate hike could be right around the corner.
Minutes from an October meeting of Federal Reserve policy makers suggested the central bank will likely raise interest rates in December. But the buck quickly trimmed its gains as investors realised that the minutes included more disagreement about the timing than investors had expected.
Comments
0 comment