US Fed rate hike boosts Sensex by 309 points; Nifty ends near 7,850

Index heavyweight RIL surged 3% to end above Rs 1,000 mark while IT majors were also the top gainers.

Benchmark share indices gained for the fourth straight session tracking a rally in global stocks after the US Federal Reserve on Wednesday raised its Federal Funds Rate by 25 basis points signalling that the world's largest economy is picking up pace.  

The S&P BSE Sensex ended up 309 points at 25,804 and the Nifty50 gained 93 points to close at 7,844.

In the broader market, the BSE Midcap and Smallcap indices ended up 1.6%-1.7% each. Market breadth was strong with 1,768 gainers and 756 losers on the BSE.

"The markets have considered the first rate hike by the US Fed in a decade in a positive sense taking it as the central bank's confirmation of recovery in the US economy. We believe emerging market currencies are likely to remain under pressure on account of the strengthening dollar and yuan depreciation. Sector-wise we would prefer sectors exposed to global over local," said Tirthankar Patnaik, Head of Research and Chief Strategist, Mizuho Bank.  

The US Federal Reserve's Federal Open Market Committee on Wednesday raised its Federal Funds Rate by 25 basis points ending its zero interest rate policy, the first increase in nearly a decade, thereby ending the uncertainty which enveloped global sentiment.  

With the uncertainty around the Fed interest rate hike out of the path, markets participants would keenly watch out for developments in the ongoing winter session of the Parliament particularly the passage of the crucial GST bill.  

STOCKS IN FOCUS

Oil majors ended mixed with index heavyweight Reliance Industries rising 3% to end above Rs 1,000 while ONGC ended down 1%.

A one-man committee was constituted to look into acts of omission and commission and recommend compensation to ONGC whose natural gas from the Bay of Bengal block had flowed to adjoining fields of Reliance Industries Ltd.

In the financial pack, HDFC Bank, HDFC and SBI were the top gainers up 1.2%-1.6% each.

IT exporters gained after the rate hike by the US Federal Reserve signalled signs on an improving economy. Infosys and TCS ended up over 1.5% each.  

Pharmaceutical shares ended higher in today’s trade with Glenmark Pharma, Sun Pharma, Dr Reddy's Lab, Aurobindo Pharma, Cipla, Natco Pharma and Wockhardt gained between 0.6%-3%.  

Steel stocks gained following the recent government’s move on Friday to impose anti-dumping duty ranging from five to 57 per cent on import of cold-rolled flat products of stainless steel for five years. Tata Steel, SAIL and JSW Steel ended up 2.6%-6.5% each.  

SBI surged 1.6% after the bank said in a notice to BSE that its board will meet on 21 December to discuss the modalities of raising equity capital, either in the domestic or overseas markets or both, and also for mopping up additional non-equity capital by way of bonds denominated either in dollars or rupees.  

NTPC rose 1.3% after the Ministry of Environment and Forests gave 'green signal' to a power project being set up by the company in Telangana while it has deferred another project of the PSU in Andhra Pradesh.   

M&M rebounded from its day's low to end 2.3% higher. The Supreme Court recently ordered on ban on registration of new diesel vehicles in Delhi until 31 March 2016.  

Among other shares, TD Power Systems ended up nearly 6% after Reliance Mutual Fund bought nearly two percentage point’s stake in heavy electrical equipment maker through open market.  

Anuh Pharma rallied nearly 6% after the pharmaceutical company said that it has received World Health Organization (WHO) prequalification for the product Sulfadoxine.  

GLOBAL MARKETS  

Asian markets ended higher on Thursday tracking overnight gains on Wall Street after the interest rate hike announced by the US Federal Reserve even as the continued sluggishness in global crude oil prices weighed. Japanese and Chinese shares were among the top gainers in the region.

The benchmark Nikkei ended up 1.6% while Shanghai Composite gained 1.8%.

Further, Hang Seng rose 0.8% while Straits Times ended up 0.9%.  

European shares surged amid strong cues from Asia and overnight gains in US stocks post the US Federal Reserve rate hike signalling that the world's largest economy is picking up pace. The FTSE was up 1.5% while CAC-40 gained 2.6% and DAX was trading 3% higher.