Domestic market cheers on US Fed verdict; Sensex surges 300 points

Domestic markets on Thursday opened over 1% up as US Federal Reserve kept the rates unchanged. 

At 0917 hours BSE Sensex was trading at 28,835.41, up 328 points, or 1.15%. The NSE Nifty was at 8,890.10, up 113 points, or 1.29%.

On 30-share benchmark, among top gainers were ICICI Bank (2.34%), State Bank of India (2.23%), Hero MotoCorp (2.23%), Maruti Suzuki (1.80%) and Axis Bank (1.74%). Among losers were Shriram City Union Finance (-0.98%), EID Parry (-0.18%), Finolex Industries (-0.16%) and Persistent Systems (-0.09%).

All the major sectors were in green. Banking and Auto sector were in lead with 454 points and 338 points respectively.

ICICI Prudential Life Insurance's Rs 6,057-crore IPO, the first by an insurer in India, on Wednesday closed with over 10-time subscription for shares offered to public.

The Indian rupee opened higher by 16 paise at 66.86 per dollar against the previous close at 67.02 on Wednesday.

On global front, Asian shares look set to rise for a sixth straight session after the Federal Reserve left US rates unchanged and plotted a lower trajectory for future hikes, slugging the dollar and boosting commodity prices, a Reuters report said.

The US Fed did highlight the risk of a hike in December, but the forward guidance on rates - known as the dot points - left investors feeling any tightening would be glacial at best, the report added.