(Reuters file)
(Reuters file)

Sensex gains 266 points on global cues

  • The Sensex rose 0.69% to 38,823.11, while the Nifty gained 0.73% to end at 11,582.90
  • Analysts expect the US Federal Reserve to ease policy later this month

Indian markets on Thursday rebounded from its two-month low tracking its global peers on bets the Federal Reserve will ease policy later this month.

The benchmark Sensex Index was up 0.69% or 266.07 points at 38823.11, while Nifty 50 share index rose 0.73% or 84 points to 11582.90.

Local markets on Wednesday closed at their lowest level since 17 May after software major Tata Consultancy Services Ltd reported lower than expected earnings for June quarter. The sentiments were also weaker due to unclear reports of higher tax on foreign investors.

Among US market, Dow Jones and S&P 500 closed 0.3% and 0.5% respectively, higher. Among European markets FTSE 100, Dax and CAC40 gained 0.2%, 0.16% and 0.3% respectively. In Asian, Nikkei and Hang Seng rose 0.5% and 0.8% respectively.

The US economy is facing risks from flagging business sentiment, a global slowdown in manufacturing, and an inflation rate that has remained persistently low, US Federal Reserve chairman Jerome Powell said in testimony before the House Financial Services Committee on Wednesday. Next US Fed policy on July 30-31.

A report on U.S. CPI due Thursday may further cement bets for a Fed easing. U.S. inflation was probably unchanged last month from May when it rose 0.1%, according to the median estimate of economists

Investors are now eyeing corporate earnings for June quarter for further cues. Infosys Ltd and IndusInd Bank Ltd are the next major companies to report, with their results scheduled Friday. Retail inflation and index of industrial data also on the same day.

InterGlobe Aviation Ltd fell 3% to closed at 1354.85. The stock fell for second session and eroded nearly $1 billion of market valuation after fight between two co-founder came in to public.

Dish TV India surged 16% after rating firm CARE has revised rating on its bank facilities to A3+ from A3.

Reliance Infra gained 11% after the company reported to exchanges that 16 lenders have signed the inter-creditor agreement for resolution of its debt. It has now achieved standstill for 180 days as per the pact between the lenders.