Sensex soars after Fed hike fears eases

Mumbai: The equity market soared higher on Friday tracking gains in overseas equities as concern regarding a faster than expected rate hike by the US Federal Reserve eased after a senior official said that raising interest rate too aggressively could slow the economy too much.

The Nifty scaled 108.35 points to end the day at 10,491.05 while the Sensex soared 322.65 points to end the day at 34,142.15. However, analysts are not too convinced with the pull back rally as they feel that the equity valuations are still expensive despite the steep correction over the last one-month.  

According to Kotak Institutional equities in its report, any further deterioration in the macro, especially due to inadequate pickup in GST revenues, will spook the bond market. “The market could see a deeper correction in that case.”