Indian stocks climbed on Thursday, snapping a three-session losing trend, following Asian rivals higher as the Federal Reserve’s less aggressive tone bolstered investor mood.
The benchmark indexes closed more than 2% lower on Wednesday, after posting their largest intraday percentage loss since March 7 earlier in the session, after India’s central bank surprised investors by raising interest rates.
The Indian rupee (INR=IN) gained up to 0.5 percent versus the US dollar, reaching its highest level since April 12.
“Yesterday’s surprising move by the RBI saw a rate hike, but the soothing part was the U.S. Fed’s attitude,” said Ajit Mishra, vice president, of research at Religare Broking.
As of 0511 GMT, the NSE Nifty 50 index (NIFTY) was up 1.36 percent at 16,904.05, with the majority of its key sub-indices in positive territory, while the S&P BSE Sensex (.BSESN) was up 1.43 percent at 56,465.56.
Nifty’s public sector bank (CNXPSUBANK), metal (CNXMETAL), auto (CNXAUTO), and information technology (CNXIT) sub-indices were among the top gainers, climbing between 2% and 1%.
Hero MotoCorp (HEROMOTOCO) surged 4% and was the highest gainer on the Nifty 50, pushing the auto index 1.6 percent.
The broader Asian market followed Wall Street’s gains after Powell stated that the Fed was not “seriously considering” a 75 basis-point rate hike, dampening some market expectations for a rapid tightening path.