Markets surge after Fed signals slower rate hikes; Sensex up over 1,000 pts

Four-fifths of the Sensex constituents ended with gains. Bajaj Finance rose 10.7 per cent and was the best-performing index stock

Indian markets rallied on Thursday after the US Federal Reserve raised interest rates by 75 basis points (bps) for the second straight month and showed a strong desire to curb inflation. Risk appetite, however, got a boost on optimism that the US central bank would slow the pace of monetary tightening.

The Sensex closed at 56,858 with a gain of 1,041 points, or 1.9 per cent — the biggest single-day gain in two months. The Nifty rose 288 points, or 1.7 per cent, to end the session at 16,929. Both indices closed at their highest level since May 2.

Investor sentiment was