Mumbai: The equity markets extended their gains for the fifth straight day with the Sensex climbing above its psychological 27,000-level mark as the US Federal Reserve after a two-day meeting hinted that the monetary policy tightening would be gradual.
The announcement eased fears about a sudden outflow of money from emerging markets. A hike in the US interest rate would make it costlier for global fund managers to borrow money from the US. After opening the day on a positive note, the Sensex soared 283.17 points to end the trading session at 27,115.83. The Nifty gained 83.05 points to end at 8,174.60.
“A relatively dovish statement from US FOMC has provided the much needed relief to Indian markets. But, the Fed chair’s stress on being data dependent, keeps alive the possibility of at least one rate hike this year,” said Anand James, co-head, technical research desk, Geojit BNP Paribas Financial Services.
