MARKET LIVE: Sensex, Nifty likely to open gap-up as global markets rally

Stock market live updates: After tanking over 2 per cent the day before on RBI’s surprise rate hike, the Sensex and Nifty are looking to start Thursday’s session with strong gains as the US Fed’s in-line rate increase turned global investors upbeat overnight. 

At 8:00 am, the SGX Nifty futures were quoting at 16,850 levels, hinting at a likely opening gain of 150-odd points for the Nifty50.

In a surprise move, the Reserve Bank of India raised the key repo rate by 40 bps on Wednesday, just ahead of the US Fed policy decision. The off-cycle hike came as a shock to markets, that plunged sharply. 

Meanwhile, in the US, the S&P 500 recorded its biggest single-day percentage gain in more than two years, up 3 per cent. Dow Jones surged 2.8 per cent, and Nasdaq soared 3.2 per cent after the US Federal Reserve hiked interest rates by 50 bps and announced its plan to trim the $9 trn asset portfolio from June onwards.

Moreover, the US Fed Chair relieved the markets as he said a 75-bps rate hike is not on cards right now. 

It remains to be seen whether domestic investors will heave a sigh of relief, folllowing the global investor community. 

That apart, oil prices jumped on Wednesday, as the EU spelled out plans to phase out imports of Russian oil, raising concerns about further market tightness. Brent crude oil futures zoomed 4.9 per cent to $110.14 a barrel, and WTI crude jumped 5.3 per cent to $107.81 a barrel.

In the primary market, Life Insurance Corporation of India’s (LIC’s) IPO was subscribed 0.67 times, at the end of Day 1, driven by robust interest from its policyholders (2 times), employees (1.2 times), and the retail segment (0.6 times). The issue will remain open till May 9, including subscription on Saturday.