New Delhi: Indian stocks and rupee rallied broadly on Thursday after the Federal Reserve stunned markets and decided not to taper its asset-buying programmed. The BSE Sensex zoomed by 574.13 points or 2.88 percent to 20,536.29. Similarly, the broad-based NSE Nifty jumped 183.65 points or 3.11 percent to 6,083.10. Rupee also gained 174 paise to 61.80 against dollar in early trade.
The Fed said it would await evidence of stronger economic growth before adjusting the pace of its purchases, and in a press conference, Federal Reserve Chairman Ben Bernanke said market expectations cannot dictate policy actions. The prospect that US rates could stay low for longer was further underlined by news from the White House that noted-dove Janet Yellen was the front runner to take over the Fed when Ben Bernanke steps down. In other Asian markets, Hong Kong’s Hang Seng rose by 1.67 percent, while Japan’s Nikkei by 1.32 percent today. The Dow Jones industrial average rose 147.21 points or 0.95 percent, to 15,676.94, the S&P 500 gained 20.76 points or 1.22 percent, to 1,725.52 and the Nasdaq Composite .IXIC added 37.942 points or 1.01 percent, to 3,783.641.The S&P’s previous closing high was 1,709.67 and the Dow’s was 15,658.36, both on August 2.
Bureau Report
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