The domestic stock markets Sensex and Nifty rallied on Monday morning, buoyed by a host of global factors including Federal Reserve Chairman Jerome Powell’s statement that the central bank would be patient and flexible in steering the course of interest rates. The Sensex rallied by more than 380 points to intra-day high of 36,076.95, while the broader Nifty 50 was trading firmly above the 10,800-level. We take a look at three key global factors propelling the Sensex, Nifty rally this morning.
Fed Chairman Jerome Powell’s boost
“With the muted inflation readings that we’ve seen, we will be patient as we watch to see how the economy evolves,” Jerome Powell said on Friday, on a panel with his predecessors Janet Yellen and Ben Bernanke at the American Economic Association’s annual meeting in Atlanta. The stock markets took positive cues from the statement and Wall Street rebounded on Friday to close at its highest in two weeks.