Indian equity indices open higher, surge further

Mumbai, March 17 (IANS) Key Indian equity indices opened higher on Thursday and surged ahead in line with global cues, particularly after the US Federal Reserve kept its key interest rates unchanged after a much-watched two-day meeting that concluded on Wednesday.

The 30-scrip Sensitive Index (Sensex) of BSE, which had closed at 24,682.48 points on Wednesday, opened the day at 24,852.18 points. An hour into trading, it was ruling at 24,888.50 points, with a gain of 206.02 points, or 0.83 percent, over the previous day’s close.

Similarly, at the National Stock Exchange (NSE), the 50-share Nifty was trading at 7,572.95 points, with a gain of 74.20 points, or 0.99 percent.

On Wednesday, the Sensex, which was in the red for the most of the trading session, saw a final-hour rally and eventually closed with a gain of 131.31 points, or 0.53 percent. The Nifty also closed 38.15 points or 0.51 percent higher.

"The US markets moved up on Wednesday, with S&P 500 and Dow reaching new highs of 2016, after the Federal Reserve kept its key interest rates unchanged and downgraded its forecast for number of rate increases to two in 2016 from the earlier projected four," Angel Broking said.

"Also, the US inflation increased more than expected in February as rents and medical costs maintained their upward trend. Further, housing market continued its strength last month and manufacturing stabilised," the brokerage said.

"Indian markets bounced back in the last hour of trade with Nifty reclaiming the 7,500-point intra-day mark on Wednesday, ahead of the outcome of the Fed meeting. Private sector banks, fast moving consumer goods and select technology stocks helped the market re-bound."