Snapping three-day long losing streak, the S&P BSE Sensex ended 115 points higher in trade on Thursday, while broader CNX Nifty closed above its key 7,400-mark.The benchmark indices gained as global risk rally gathered momentum driven by hopes that the US Federal Reserve might opt to not raise interest rates at all this year.The 30-share index ended the day at 24,338, up 115.11 points, while broad-based 50-share index quoted 7,404, up 42.20 points at close.

Market breadth turned positive with 18 of the 30 Sensex components ending the day in green.ONGC was the best performing stock on Sensex and ended the day 3.28 per cent higher.Asian shares gained on hopes of a Fed status quo after New York Fed chairman William Dudley on Wednesday said “financial conditions are tighter than they were in December” and “needed to be considered in March rate review.”

Dudley’s comments hammered the dollar and sparked a huge rally in oil prices.Domestic markets have been taking a beating on the back of declining global crude prices but analysts are certain of a bounce back in shares quickly once the current bout of selling ends globally.

“The top global fears – Chinese hard landing, yuan devaluation, Fed’s apathy to financial liquidity, collapsing crude prices – were alleviated yesterday night by sympathetic statements by Fed’s (William) Dudley,” said Varun Khandelwal, director at Bullero Capital.”This soothing of nerves led traders to focus once again on the longer term prospects for India.””The 5 per cent rally in crude prices and the PBoC fixing for the yuan coming in sharply higher also helped calm investor nerves,” he said.

Upstream oil companies Cairn India gained 5.69 per cent and ONGC rose 3.28 per cent, tracking the global crude rally.Meanwhile, pharma stocks fell after reports of a US ruling to produce active pharmaceutical ingredients (APIs) locally, while analysts doubt the veracity of the import ban report.

Source : businesstoday.in

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