Markets cheer US Fed stance; Nifty ends above 7,950

Markets have closed higher amid choppy trades after the US Fed Reserve decided to keep the interest rates unchanged on concerns about weakness in US economy and other emerging markets.

Provisionally, the Sensex ended higher by 205.75 points at 26,169.72 and the Nifty gained 70.40 points at 7,969.55.

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Updated at 2:40

Benchmark share indices continued to trade with sharp gains on Friday helped by a rebound in financials after the US Federal Reserve decided to maintain status quo on key policy rates citing US and global economic growth concerns.

At 2:38PM, the 30-share Sensex was up 320 points at 26,284 and the 50-share Nifty was up 93 points at 7,993.
 
In the broader market, the BSE Mid-cap and Small-cap indices were up 1.3-1.6% each. Market breadth was strong with 1,742 gainers and 735 losers on the BSE.

Meanwhile, foreign institutional investors were net sellers in equities worth Rs 337 crore on Wednesday. On Thursday markets were close on account of Ganesh Chaturthi festival.

The Indian rupee appreciated against the US dollar after the US currencies eased against major global currencies after the Fed's move to keep rates unchanged.

GLOBAL MARKETS

Except Japan most Asian markets ended with marginal gains. The benchmark Nikkei ended down 2% while Shanghai Composite, Straits Times and Hang Seng ended up 0.3-0.4% each.

However, European shares were trading lower with FTSE, CAC-40 and DAX down 0.2-1.4% each after the US Fed kept rates on hold citing global growth concerns.

SECTORS & STOCKS

Except for FMCG all sectoral indices on the BSE were in the green led by Realty and Bankex.

Private banks were among the top gainers led by ICICI Bank up 4% followed by HDFC Bank, Axis Bank and SBI. Mortgage lender HDFC was up 3.2%.

Among the index heayweights Reliance Industries and Infosys was up 1-2% each.

According to reports, Lupin was up 1.6% after it received another nod from the US FDA for a drug that can treat bacterial infections.

Shares of Infosys are up 1% after the IT major in a release announced that Qantas Credit Union has selected Infosys Finacle to improve its customers's digital experience, as part of their business transformation strategy.

GAIL was down 0.7%. State gas utility GAIL India has re-invited bids to hire nine newly-built LNG ships on modified terms that allow Indian shipyards to pick up to 13 per cent stake in three of these carriers that shipbuilders have to make in the country

Tata Steel will sell shares in automaker Tata Motors worth up to $188 million, according to a term sheet of the deal seen by Reuters on Friday. Tata Steel was up marginally while Tata Motors was down 2.8%.

Maruti Suzuki was up 2% on reports that it is planning to start an investor roadshow in a bid to explain why it let Suzuki oun the upcoming plant in Gujarat.

Among other shares, Mindtree gained 1.66% to Rs 1,399 on the Bombay Stock Exchange (BSE) after the company revealed that it has gone ahead and partnered with Dubai-based Flydubai to provide a fully digital experience to travelers.