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BSE Sensex up 250 points; NSE Nifty above 7,800-mark as US Fed signal gradual rate hike

By FnF Desk | PUBLISHED: 19, Nov 2015, 12:12 pm IST | UPDATED: 19, Nov 2015, 12:38 pm IST

BSE Sensex up 250 points; NSE Nifty above 7,800-mark as US Fed signal gradual rate hike New Delhi: The domestic markets were trading sharply higher in trade on Thursday tracking positive trend seen in Asian markets and overnight gains on Wall Street as Federal minutes of the October 27-28 meeting signalled at high probability of December rate hike but a gradual tightening going ahead.

The S&P BSE Sensex rose over 250 points to reclaim its crucial level of 25,500, while the broader CNX Nifty went above its key support level of 7,800.

At 11:29 am, the 30-share index was trading at 25,736.58, up 254.06 points, while the borad-based 50-share index was quoting 7,807.15, up 75.35 points.

"We maintain our view that the index has a crucial and important support at 7691. Only a sustainable move below this level may trigger further correction in the market. Till then the possibility of bouncing back towards 7820-7860 cannot be ruled out," said Angel Broking in a research note.

Market breadth remained fairly positive with 24 of the 30 Sensex components trading in green.

Hero MotoCorp stock was the best performer on the Sensex and surged over 2 per cent as the company crossed 1 million sales mark during the festive season.

Stock of Dr Reddy's Lab was the top loser on both the benchmark indices and fell nearly 7 per cent following news reports a US law firm has filed a class action suit against the drugmaker. The scrip recovered some of initial losses.

Meanwhile, minutes of the European Central Bank's last policy meeting are due later today and will likely reinforce expectations of further easing in December.

Among Asian markets, China's Shanghai Composite was trading flat with a positive bias, while Hong Kong's Hang Seng was up 1.32 per cent. Japan's Nikkei hit its three-month peak and was ruling 1.41 per cent higher.

Overnight, US stocks closed higher after minutes from the Federal Reserve October meeting showed a solid core of officials rallied behind a possible December rate hike. The Dow Jones industrial average rose 247.66 points, or 1.42 per cent, the S&P 500 gained 33.14 points, or 1.62 per cent and the Nasdaq Composite added 89.19 points, or 1.79 per cent.