Mumbai : The Sensex rebounded strongly to end near a two-month high of 26,878 by zooming over 245 points and the NSE Nifty rescaled the 8,200-mark after the US Fed minutes hinted at the uncertainty over the pace of rate hike.
A higher US interest rate means flight of capital from emerging markets in quest of better returns. Sentiment took on shine after value-buying in blue-chips amid a mixed trend in global markets boosted by overnight gains in the US.
The US shares closed near record after the minutes of the December meeting signalled a less aggressive stance on policy tightening, traders said, reports PTI.
The Sensex stayed in the positive space throughout and closed at near two month high at 26,878.24, up 245.11 points, or 0.92 per cent.
This is its highest closing since November 10 at 27,517.68. Intra-day, it shuttled between 26,917.21 and 26,738.42.
It had lost 10 points in the previous session. The 50-share NSE Nifty wrested control of the crucial 8,200 level and ended at 8,273.80, a gain of 83.30 points, or 1.02 per cent, after moving between 8,282.65 and 8,223.70. Today’s close is the highest since 8,296.30 on November 11.
The rupee closed up against the dollar at 67.96, which fuelled the upmove. Retail investors too went ahead with buying as cash crunch following demonetisation started to lose its bite, they added.
