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Lower chances of US rate hike lifts Indian equities

Mumbai - Profit-booking and caution over the upcoming quarterly results forced the markets to cede some of its gains.

Lowered chances of a US rate hike, coupled with a strengthening rupee, propelled bellweather indices of Indian equity markets to gain three per cent each in the just-concluded weekly trade.
Furthermore, a Bombay High Court judgement in favour of telecom firm Vodafone in a tax dispute case and the continued positive sentiment unleashed by a massive monetary easing by the country's central bank on September 29 supported the markets' gains.
However, profit-booking and caution over the upcoming quarterly results forced the markets to cede some of its gains.
The barometer 30-scrip sensitive index of the Bombay Stock Exchange, rose 858.56 points or 3.17 per cent at 27,079.51 points from its previous weekly close at 26,220.95 points.
The wider 50-scrip Nifty of the National Stock Exchange too made gains during the weekly trade ended October 9. It rose 238.8 points or three per cent to 8,189.70 points.
"The equity markets started on a strong footing with gains in the first three straight trading sessions. Profit booking was witnessed at higher levels on Thursday," Vaibhav Agrawal, vice-president for research at Angel Broking, told IANS.
"However, dovish minutes of the Federal Reserve's September meeting pushed the markets higher on Friday resulting in a strong positive close for the markets."
Nitasha Shankar, vice-president of research at YES Securities, told IANS that the Indian markets participated in the global rally with metals, auto and auto ancillaries leading the way.
"Broader markers outperformed with maximum gains coming from metal, sugar, auto and energy stocks. Tech [technology, entertainment and media] stocks remained under pressure," she said.
The rupee, too, supported the markets. It closed the just-concluded trade at 64.74 to the US dollar. The rupee strengthened by 77 paise in the week under review. The rupee had closed at 65.51 to a US dollar in the week ended October 1.