Sensex closes 266 points higher; auto stocks rally

In his congressional testimony on Wednesday, Powell confirmed that the US economy was still under threat of a slowdown, and that the Fed was ready to “act as appropriate” to boost growth

Equity benchmark BSE Sensex rose 266 points on July 11, led by metal, auto and financial stocks amid positive global market sentiment after the U.S. Federal Reserve Chairman Jerome Powell hinted at a rate cut later this month.

After rising as much as 335 points during the day, the 30-share index settled 266.07 points or 0.69% higher at 38,823.11. The index hit an intra-day high of 38,892.50 and a low of 38,631.31.

Similarly, the broader NSE Nifty ended 84 points, or 0.73%, higher at 11,582.90. During the day, it touched a high of 11,599 and a low of 11,519.50.

Hero MotoCorp was the top gainer in the Sensex pack, spurting 4.46%. IndusInd Bank, Tata Motors, Vedanta, SBI, M&M, Sun Pharma, Tata Steel and HDFC twins too rose up to 3.63%.

On the other hand, Tech Mahindra, Yes Bank, TCS, L&T, Axis Bank and NTPC fell up to 1.27%.

“Indian markets opened positively for the first time post budget, taking cues from Asian markets which ended with handsome gains after U.S. Fed signalled at interest rate cut soon in the face of some weakening economic data,” said Narendra Solanki, Head Fundamental Research (Investment Services) – AVP Equity Research, Anand Rathi Shares & Stock Brokers.

In his congressional testimony on Wednesday, Powell confirmed that the U.S. economy was still under threat of a slowdown, and that the Fed was ready to “act as appropriate” to boost growth.

Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi ended in the green.

Equities in Europe were also trading higher in early deals.

On the currency front, the Indian rupee appreciated 14 paise to 68.43 against the U.S. dollar (intra-day).

The global oil benchmark Brent crude futures rose 0.61% to $67.42 per barrel.

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