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Indian equities open higher on US Fed's status quo

Fri, Sep 18, 2015, 09:36 AM
Mumbai, Sep 18: Relieved by the status quo in the US interest rates, Indian share markets opened higher on Friday in tune with most of the Asian peers.

The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened on Friday at 26130.36 points against Wednesday's close at 25,963.97 points -- Thursday being a festive holiday. A few minutes into trading, the index was quoting at 26,196.34 points, with a gain of 232.37 points, or 0.89 percent.

At the National Stock Exchange (NSE), the trend was similar. The broader 50-scrip Nifty, which had closed at 7,899.15 points was quoting at 7,965.40 points, with a gain of 0.84 percent.

"The trend-deciding level for the day is 25,929 and 7,889 levels," financial services firm Angel Broking said in a pre-open comment, referring to the Sensex and the Nifty, respectively.

"If Nifty trades above this in the first half-an-hour then we may witness a further rally up to 26,042-26,119 points and 7,924a "7,949 points. But if they trade below 25,929 or 7,889 levels in the first half-an-hour, then they may correct towards 25,851-25,739 and 7,864-7,828 levels."

Till late Thursday, there was some fear of a rate hike in the US, which could have potentially seen a flight of capital from emerging markets like India to the US. In fact, during August and September, foreign funds have been net sellers of Indian equities worth Rs.20,225 crore.

Even as the global financial markets speculated over when the US central bank will end its zero-interest rate policy, the Fed Chair Janet Yellen instead opted for a status quo. While she said the US recovery was solid, concern was expressed over the global economic situation.

The reaction was mixed in the Asian markets. Japan's Nikkei 225 fell around 1.5 percent during mid-morning trade, while Tokyo's broader Topix was down 1.8 percent.

While China's Shanghai Composite Index was fluctuating back and forth around the positive-negative territory, Hong Kong's Hang Seng was up 0.66 percent and Korea's Kosi was quoting higher by 0.56 percent around the time of the opening bell for Indian bourses.

In the US earlier, trading was marked by sharp volatility as blue-chip stocks fell, bond prices rose and the dollar posted its steepest single-day loss in a month against a basket of currencies, as the investor mood turned sullen after the Fed's rate status quo and concerns over global economy.

All major indices took a beating -- 0.39 percent for Dow Jones industrial Average, 0.26 percent for S&P 500 and 0.1 percent for the Nasdaq Composite. The dollar index, measuring the greenback against six currencies, fell 1.1 percent.
Agency: IANS
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