Sensex adds 200 points on US Fed's focus on growth; Nifty above 11,600

NEW DELHI: Stock market bulls further strengthened their grip on Dalal Street on Friday as the market cheered US Fed Chairman Jeremy Powell’s statement that the country was ready for relatively more inflation in order to keep relief measures in place.

However, uncertainty over US stimulus and a fast rise in Covid-19 cases in India kept gains in check. The country has reported nearly 34 lakh cases with close to 62,000 deaths.

At 09.30 am, BSE flagship Sensex was up 213.77 points or 0.55 per cent to 39,327.24 while NSE benchmark Nifty added 59.65 points or 0.52 per cent to 11,623. Metal, media and bank stocks saw buying while select private banking names were under pressure.

In the 30-share pack Sensex, Axis Bank was the biggest gainer, up 3.96 per cent at Rs 491.80. It was followed by IndusInd Bank, L&T, Tata Steel, ICICI Bank and ONGC that gained in the range of 1-3 per cent.

Asian Paints was the biggest loser, down 0.59 per cent at Rs 1,970.30. HDFC Bank, Kotak Mahindra Bank, HUL, Infosys and HCL Tech were among other top losers in the pack, down up to a per cent.

Broader market indices were faring better than their headline peers as Nifty Smallcap added 0.78 per cent while Nifty Midcap climbed 1 per cent. Broadest index on NSE, Nifty 500 was up 0.63 per cent.

Nifty PSU Bank was the biggest sectoral gainer on NSE, rising 2.5 per cent. It was followed by Nifty Media, Nifty Private Bank and Nifty Metal with gains in the range of 1-2 per cent. Nifty Realty saw profit booking with a cut of 0.04 per cent.

Globally, Longer-dated Treasury yields and the dollar rose in Asia after the US Federal Reserve shifted its policy framework to place more emphasis on boosting economic growth and less on worries about letting inflation run too high.

The 10-year US Treasury yield rose to 0.7870 per cent, the highest since June 10, which caused the yield curve to steepen, reflecting the Fed's tolerance for higher inflation.

The dollar hit a two-week high against the yen but held steady against most other major currencies. Gold prices erased early gains and edged higher.

MSCI's broadest index of Asia-Pacific shares outside Japan bounced between gains and losses in choppy trade. U.S. stock futures rose 0.25 per cent.

Australian stocks fell 0.85 per cent. Shares in China rose 0.33 per cent, while Tokyo stocks gained 0.16 per cent.