Domestic stock markets on Friday rallied smartly amid firm global cues and receding fears over an interest rate hike by the US Federal Reserve. The 30-share Sensex zoomed 186.14 points or 0.66 per cent to close at 28,599.03, its highest closing since September 9, when it had closed at 28,797.25.
The NSE Nifty, which again went past the 8,800-mark to touch a high of 8,847.65 intra-day, failed to maintain its key levels and slipped to hit a low of 8,750.50 before closing 37.30 points, or 0.43 per cent, higher at 8,779.85.
According to analysts, the sentiment remained upbeat for the better part of the day on account of positive Asian cues, tracking overnight gains on the US bourses after another round of below-par US data dimmed expectations for a Federal Reserve rate hike this month. The market also turned optimistic after finance minister Arun Jaitley expressed hope that the RBI will keep in mind the decline in retail inflation while deciding on interest rates at its policy meeting on October 4.
Anand James, chief market strategist, Geojit BNP Paribas Financial, said, “finance minister’s review of quarterly performance of state owned banks talked up the chances of more capital infusion, lifting PSU banking stocks earlier in the day. However, a sharp downturn in European markets dented the bullish sentiment, sparking profit booking. Despite weak US data reducing chances of a rate hike, caution remains the watch word with only a few days ahead of FOMC rate decision.”
“The market started on a very optimistic view taking clue from the global market. ..But at the end of the day, market lost this gain after a weak start in European market …,” said an analyst.