Markets Surge On Hopes Of Delay In US Interest Rate Hikes

Business

oi-Sunil Fernandes

By Sunil Fernandes

Published: Tuesday, September 6, 2016, 9:29 [IST]

Benchmark indices opened the day higher in trade, following a tepid US jobs data, which raised hopes of a further delay in interest rate hikes in the US.

Most Asian markets also traded higher, following hopes that there would be no interest rate hikes in the US at least until Dec, 2016.

The Sensex was trading higher by 213 points, while the Nifty was higher by 59 points in trade. Leading the set of gainers were stocks from the private sector banking space like Yes Bank, IndusInd Bank and Kotak Bank.

Other banking stocks were absolutely flat, even as new RBI governor, Urjit Patel took charge as the Governor of RBI.

Mindtree shares fell as much as 6 per cent, after the company cut its sequential revenue guidance for the second quarter on the back of cross-currency movements. The impact of the Mindtree guidance was felt on other softwate stocks like Wipro and HCL Tech, which also declined in trade.

Shares in Jubilant Foodworks rose after the company reported a good set of quarterly numbers. Welspun India was locked at the upper end of the circuit filter for the third straight day, after seeing a price collapse from Rs 108 to Rs 47. This was after target Corporation of the US had severed ties with the company.

Meanwhile, the rupee opened strong at Rs 66.52 to the US dollar.

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