INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Benchmark indices climbed on Thursday as if there is no tomorrow
The optimism globally over dovish Fed comments had a rub off on all major asset classes, dragging dollar and pushing up appetite for risk
assets such as emerging market equities
But the Federal Reserve Chairman Jerome Powell on Wednesday surprised many when he said US interest rates were just below neutral
This was a clear signal that Fed believes the rate hike cycle was nearing its end
It also helped the rupee get past 70 level against the greenback
Dollar index, which compares the movement of dollar against a basket of six major world currencies, fell edged 0.09 per cent lower at 96.58
It though recovered later, most Asian currencies recorded gains against the Us currency
Hopes are high that the appreciation in rupee curb foreign outflows from the domestic equity markets.
"We are in for very good times in 2019
The only fly in the ointment will be the electoral results which can cause volatility for a few days
But surely with a one-year view we are very-very bullish and we think all falls equity should be the outperforming asset in 2019," said
Sanjiv Bhasin, IIFL Securities
US crude below $50 a barrel markWTI crude futures for January delivery dropped 0.93 per cent to $49.80 a
This was the first time Us crude futures dropped below $50 level in an year
Brent crude, Meanwhile, was trading 1.17 per cent lower at $58 a barrel
A jump in US stockpiles and data suggesting Russian crude shipments to China hit record in October weighed on crude oil prices.
The recent
decline in crude oil prices, and a 5 per cent appreciation in rupee in a one month has raised hopes that the RBI may maintain status quo on
the policy rate in the forming policy review.
European markets trade higherDespite Chinese stocks trading lower on Standard Poor's
Indices in Germany, France, the UK and other key markets of Spain and Italy rose up to 0.9 per cent
SP futures though were trading marginally lower at 2,735.25
Earlier in the day, Standard Poor's expressed concern that China's sovereign rating could face pressure if policymakers revert to rapid
credit growth to shield the economy from the impact of a trade war with the United States.
Technical breakoutThe index broke aove a broader
range of 10,489-10,774 during the session
The Nifty50 barometer was trading in range for the last ten trading sessions
The break above coincided with the bearish gap area of 10,843-10,754 on October 4
Experts had earlier anticipated a move towards 10,800-10,850 were the index rise above 10,750-10,770 level
The index moved above this range on Thursday
