Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Market / Stock-market-news/  Sensex closes 170 points higher, Nifty above 7,700; Fed decision eyed
BackBack

Sensex closes 170 points higher, Nifty above 7,700; Fed decision eyed

The Sensex closes 0.7%, or 170.09 points, higher at 25,320.44, while the Nifty closes 0.66%, or 50.85 points, higher at 7,700.90

Indian stocks rose for a second day as emerging-market equities rebounded from a six-year low before the US Federal Reserve’s decision on interest rates. Photo: MintPremium
Indian stocks rose for a second day as emerging-market equities rebounded from a six-year low before the US Federal Reserve’s decision on interest rates. Photo: Mint

Mumbai: Indian stocks rose for a second day as emerging-market equities rebounded from a six-year low before the US Federal Reserve’s decision on interest rates.

Sun Pharmaceutical Industries Ltd, the nation’s most valuable drug maker, rose to a one-week high after it agreed to sell a manufacturing unit in the US Hindustan Unilever Ltd, the biggest home-products maker, rallied to a three-month high. Oil and Natural Gas Corp. Ltd (ONGC), the largest state explorer, rose from its lowest price since May 2009.

The S&P BSE Sensex climbed 0.7%, or 170.09 points, to 25,320.44 at the close, after changing direction at least six times.

The broader Nifty index closed 0.66%, or 50.85 points, at 7,700.90.

The Federal Reserve begins its two-day meeting on Tuesday, with traders pricing in 76% odds that rates will be raised for the first time in almost a decade. A rout in oil will help outweigh the impact of the Fed’s decision on India, which imports 80% of its energy needs, according to AdviseSure Ventures Pvt. Ltd.

“India is likely to decouple a bit from other emerging markets as the benefit of lower oil prices will overshadow concerns about the Fed’s rate decision," Abhimanyu Sofat, the co-founder of Mumbai-based investment advisory firm, said by phone. “European equities also opened strong, aiding sentiment."

Foreigners have pulled $489 million from local shares this month before the Fed’s rate decision and as concerns grew on the passage of a unified sales tax bill in Parliament. Opposition law makers are protesting an Indian court order for the Congress party’s top leaders to testify in a corruption case, raising the risk of further delays to the tax bill that is the centerpiece of Prime Minister Narendra Modi’s reform push.

“Investors are tracking poltical developments as the Congress can’t continue to drag its feet on GST (goods and services tax) for long," Sofat said.

India’s consumer prices rose 5.4% in November from a year earlier, following a 5% increase in October, according to data released after market hours Monday. The gain may pose a challenge for Reserve Bank of India (RBI) governor Raghuram Rajan, who left one of the highest interest rate in major Asian economies unchanged this month as risks to his inflation target of 5% by March 2017 increase.

Rajan expects the Fed to raise interest rates by as much as a quarter point this week.

Global investors bought a net $46 million of Indian stocks on 11 December, ending six days of outflows. The Sensex has fallen 8% this year and trades at 14.9 times projected 12-month earnings. The MSCI Emerging Markets Index is valued at a multiple of 10.8. Bloomberg

Santanu Chakraborty contributed to this story.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 15 Dec 2015, 09:45 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App