Mumbai: Call it the U.S. Fed chief Janet Yellen effect that saw the Sensex surge a robust 266 points, to close at 28,773 after two days of losses over uncertainty of the US Fed’s move. Ms Yellen keeping the rates unchanged saw foreign portfolio investors making a beeline for the emerging markets, India in particular. The Nifty50 closed 90.30 points higher at 8,867.45. Both the indices retreated a bit from their highs at opening with the Nifty within a whisker of touching the new level of 8,900.
Investor wealth increased to Rs 112 lakh crore up by Rs 1.11 lakh crore, according to figures put out by the BSE. “The fact that the Nifty retreated from its highs on opening, shows it is unable to cross 9,000” said independent analyst Ambareesh Baliga. “It shows a distribution pattern, namely, selling in non-index stocks. “The bulls have two and a half months to clear their positions as the next United States Fed hike could happen only in December, after the United States elections,” he said.