Sensex ends at 2-week closing highs, Nifty at 7,844 post US Fed rate hike

In a volatile trading session, the S&P BSE Sensex extended gains for the fourth straight session on Thursday to end 309 points higher, while the broader CNX Nifty settled the day just a tad below key 7,850-mark.

Historic interest rate hike by US Federal Reserve cheered Dalal Street after the Fed Chief Janet Yellen signalled any further hike will be gradual.

The US central bank's policy-setting committee raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25 per cent and 0.50 per cent, ending a lengthy debate about whether the economy was strong enough to withstand higher borrowing costs.

The 30-share index ended at 25,803.78, up 309.41 points, while the broad-based 50-share index quoted 7,844.35, up 93.45 points at close.

Market breadth remained fairly positive with 25 of the 30 Sensex components ending the day in green.

Tata Steel stock was the best performer on both benchmark indices and added 5 per cent.

Gains tracked a rally in Asian markets, while India's volatility gauge VIX fell 15.02 per cent to log its biggest single-day fall since September 18 and raising the odds for a December or 'Santa' rally.

Investors also booked profit, capping broader gains, given uncertainty about the outlook for Indian markets in 2016 as the government continues its attempt to pass key reforms bills in parliament and earnings remain lacklustre.

"The markets had factored this (Fed hike) in, the Santa rally which we had predicted is now happening," said Kapil Khandelwal, director at Equnev Capital.

"But directionally we see 2016 being a down year for the markets, there's no major trigger in terms of corporate earnings," the expert added.

All Asian markets logged gains in today's trade with China's Shanghai Composite adding 1.81 per cent. Hong Kong's Hang Seng index finished 0.79 per cent higher, while Japan's Nikkei settled the day 1.59 per cent up.

Overnight, US stocks made smart gains. The Dow Jones rose 224.18 points, or 1.28 per cent, the S&P 500 gained 29.66 points, or 1.45 per cent, and the Nasdaq Composite added 75.78 points, or 1.52 per cent.

Lowdown on markets today

3:15 pm

Sensex at 25,807.65, up 313.28 points

Nifty at 7,844.95, up 94.05 points

2:00 pm

Sensex at 25679.50, up 185 points

Nifty at 7813.55, up 62 points

12:15 pm

Sensex at 25,487.82, down 6.55 points

Nifty at 7,749.50, down 1.40 points

11.15 am

Sensex at 25,473.89, down 20.48 points

Nifty at 7,745.20, down 5.70 points

10:00 am

Sensex at 25539.76, up 45 points

Nifty at 7771.50, up 20 points

09:22 am

Sensex at 25,620.18, up 125.81 points

Nifty at 7,790.10, up 39.20 points