Domestic stock market benchmarks the Nifty 50 and the Sensex ended with significant gains on Thursday, November 2, following positive global cues after the US Fed kept interest rates on hold, fueling expectations that the US central bank is done with rates.
Last night, the Fed kept the policy rate within the 5.25-5.50 percent range. Experts pointed out that although Chairman Jerome Powell did not completely rule out the possibility of another rate hike, market watchers perceived that he was not as hawkish as they might have anticipated.
“The Fed left the door open for more rates even though he did not defend the Sept Dot plot, which implies one more hike in December. We continue to think the Fed is done hiking,” said Madhavi Arora, chief economist at Emkay Global Financial.
After the Fed’s announcement, the yield on the 10-year US Treasury fell to its lowest in more than two weeks to 4.7196 percent. The dollar also softened against its peers, giving a boost to the equity markets.
Nifty 50 closed the day at 19,133.25, up 144 points, or 0.76 percent, while the Sensex closed the day with a gain of 490 points, or 0.77 percent, at 64,080.90