NEW DELHI: The S&P BSE Sensex surged over 300 points in trade on Friday tracking Asian markets, which were trading higher after US Federal Reserve minutes confirmed that the central bank is in no hurry to hike interest rates this year.The Nifty50 also surged past its crucial psychological level of 8200.The sentiment on the Street was upbeat with eight out of ten BSE stocks trading in the black.
The broader market indices also participated in the rally with BSE midcap index trading higher by a per cent while the BSE smallcap index rose 1.1 per cent.

The shares of DLF surged 3 per cent while that of ONGC gained about 2 per cent. HDIL, Union Bank and Tata Motors were also up about 2 per cent. The stocks of Future Consumers soared 11 per cent while Future Retail traded higher by 4 per cent.The rupee rose by 16 paise to 64.90 against the dollar in morning trade on Friday after the minutes of the Fed’s September 16-17 policy review showed that US policymakers were concerned about the slowing world economy even though they did not rule out a rate hike in 2015.

The domestic currency had dropped by 11 paise to settle at 65.06 against the greenback on Thursday on fresh dollar demand from banks and importers.Most Asian markets traded with smart gains after US Federal Reserve’s FOMC meeting minutes indicated that there was no urgency on part of the Federal Reserve to hike rates soon. Japan’s Nikkei was up 0.8 per cent while the South Korean Kospi was trading higher by 0.6 per cent. Hong Kong’s Hang Seng index was up 2 per cent while China’s Shanghai Composite gained 0.5 per cent.The minutes from the September 16-17 US Fed meeting released overnight showed the US policymakers were concerned over signs of a global economic slowdown.

“Most participants continued to see risks to real activity and unemployment as nearly balanced, but many acknowledged that recent global economic and financial developments may have increased the downside risks to economic activity somewhat,” the minutes revealed.Jeffrey M Lacker, a Fed member, who voted against the status quo on policy rate, said: “Maintaining exceptionally low real interest rates was not appropriate for an economy with persistently strong consumption growth and tightening labour markets.”Lacker was of view that further delay in removing monetary policy accommodation would represent a risky departure from past patterns of FOMC behaviour in response to the economic conditions.

Source:http://economictimes.indiatimes.com/markets/stocks/news/sensex-rallies-over-300-points-nifty-reclaims-8200-levels/articleshow/49281748.cms

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