Opening Bell: Nifty above 15,800, Sensex gains around 500 points; bank, auto, energy stocks shine

Taking positive cues from global markets after the expected interest rate hike announcement by the US Federal Reserve, the domestic equity market opened nearly one per cent higher on Thursday. The broader Nifty50 opened above 15800 and the Sensex climbed around 500 points to start near 53,000-mark. 

In the broader market, Nifty midcap and small cap rose more than one percent as India VIX opened near 21-mark.  

Sector-wise, all Nifty sectoral indices were comfortably sitting in the green with Bank, IT, Realty and Energy stocks gaining the most 

"Along with the highest rate hike in 28 years, the Fed chief delivered the clear message that 'we have the tools and resolve to achieve price stability. Also, the Fed is significantly reducing the size of its balance sheet. This has negative implications for equity markets globally. Any relief rally is unlikely to last long. In India, the sustained FPI selling is an additional headwind," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Investors may follow a cautious investment strategy without taking aggressive bets suggested the expert.

"Take a long-term view and use dips in the market to slowly accumulate fairly priced high quality stocks such as leading banks, leading IT, pharma and select autos. Increase the cash component in the portfolio to exploit any probable sudden changes in outlook and market trend," Vijayakumar added.

In the pre-open, the Sensex jumped by nearly one per cent as 29 shares advanced, while Hindustan Unilever was the only stock sitting in the red on the 30-share index.  

Earlier, SGX Nifty Futures traded higher by around 140 points on the Singaporean exchange, while Japanese Nikkei 225 gained nearly 1.5% in the morning trade on Thursday.  

Besides, major US indices too ended in the green on Wednesday. US benchmarks Dow Jones, Nasdaq and S&P 500 ended higher by 1%, 2.5% and 1.4% respectively after the Fed rate hike came on the expected lines.