Sensex recovers 118 pts as US rate hike prospects ebb

Mumbai, Aug 18 (PTI) Stocks rose for the first time inthree days with the market benchmark Sensex rebounding 118points to 28,123.44 on fresh buying after minutes of the USFed July meeting cooled rate hike expectations. Brokers said the likely delay in US rate hike is positivefor emerging markets, especially India, triggering fresh roundof purchases by retail and institutional investors. Minutes of the US Federal Reserve’s latest meetingreleased yesterday showed that policymakers were in no rush toraise interest rates. Shares of Bharti Airtel settled with gains of over 2 percent, following which the market capitalisation of the companysurged by Rs 2,858 crore. Power Grid Corporation of India surged to 52-week high onthe bourses and settled for the day with gains of over 4 percent, adding Rs 3,871 crore to its mcap. "Risk appetite returned after FOMC minutes revealed lesserchances of a US rate hike soon. It also helped that Moody’sretained India’s growth forecast, pushing Indian equitieshigher," said Anand James, Chief Market Strategist, Geojit BNPParibas Financial Services. Moody’s Investors Service has retained India’s growthforecast at 7.5 per cent for 2016 but revised upwardsestimates for China to 6.6 per cent citing strong fiscal andmonetary support. The 30-share Sensex after opening higher advanced to theday’s high of 28,214.17 but slipped on profit-booking. Itfinally settled 118.07 points or 0.42 per cent up at28,123.44. The gauge lost 147.03 points in the last two days. The NSE Nifty bounced back 49.20 points or 0.57 per centto 8,673.25. It shuttled in a range 8,690.70-8,645.05. In line with the overall trend, broader markets too turnedpositive with the small-cap and midcap indices recovering byup to 1.01 per cent. Overseas, Asian stocks ended mixed as indices in HongKong, South Korea and Taiwan rose by 0.05 per cent to 0.98 percent while indices in China, Japan and Singapore fell by 0.17per cent to 1.55 per cent. European markets were higher with key indices in France,Germany and the UK up by 0.20 per cent to 0.55 per cent.(MORE) PTI SUN DP KPS SDG RSU ARRABK