The Fed said it would reduce its monthly asset purchases by $10 billion to $75 billion, but it also indicated that its key interest rate would stay at rock bottom even longer than previously promised. (Read: 10 must-know facts about QE taper)
On the whole the Fed's move was seen as a vote of con fidence on the US economy, as a run of upbeat data recently added to signs that growth momentum is broadening.
As of 08.21 a.m., the Nifty futures traded 0.61 per cent or 38 points higher at 6,304. The spot Nifty had closed at 6,217 on Wednesday.
Gains in Asian markets were led by Japan's Nikkei, which traded 1.6 per cent higher. Tokyo stocks were also bolstered by a surge in the dollar/yen to over five-year highs in the wake of the Fed decision, underscoring the benefits of a weak currency for Japan's export-reliant economy. (Read the full story here)
Analysts said investors were also relieved to see the 10-year U.S. Treasury yield stayed below 2.9 percent after the Fed taper decision, given many had expected the yield to test that level.
"Fed's tapering is a sy mbolic event, but the market was relieved that the impact from tapering would be limited, so there is nothing more positive than this to the stock market," said Norihiro Fujito, a senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
(With inputs from Reuters)
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