US Fed rate plan fails to discourage D-St bulls; Sensex rises 1,060 pts from day’s low

Overall, it was a volatile day for the equity market and nervousness was seen in the morning session while investors’ sentiments turned positive in the second half with more buying seen in IT stocks, which tend to benefit when yields and dollar rise.

The 30-share pack Sensex climbed 696.81 points or 1.22 per cent to close at 57,989.30. Its broader peer NSE Nifty rose 197.90 points or 1.16 per cent to 17,315.50.

“US 10 year bond yields have crossed 2.3 per cent after the more hawkish commentary from the US Fed to control the inflation. We believe that volatility will likely continue before we conclude the equilibrium. Investors should focus on the quality names where the earnings expectations are intact, and raw material inflation pressure is limited,” said Neeraj Chadawar, Head – Quantitative Equity Research, Axis Securities.


Market at a glance:

• Paytm shares slumped further 4%, hit all time low
• Zee Ent dropped 3% after Bombay HC allows NCLT to hear Invesco plea
• ITC continued its stellar run, hits Rs 250 level after rising another 2%
• Shankara Building saw profit-booking after nine-day rally
• India VIX, barometer of volatility, eased 2% to 24 level

More to come…