Sensex soars 935 pts, crosses 60K, Nifty above 17,900

The domestic equity barometers zoomed in the afternoon trade, tracking strong global cues. Steady foreign investment flow also encouraged market sentiments. The Nifty crossed the 17,900 mark. All the sectoral indices on the NSE were in the green. Auto, healthcare, metals and banks shares were in demand.

At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 935.40 points or 1.58% to 60,076.63. The Nifty 50 index added 291.05 points or 1.65% to 17,913.30.

Apollo Hospitals (up 5.92%), Cipla (up 3.61%), Eicher Motors (up 3.43%), Indusind Bank (up 3.34%) and Tata Motors (up 3.11%) were top Nifty gainers.

In the broader market, the S&P BSE Mid-Cap index rose 2.04% while the S&P BSE Small-Cap index increased 1.47%

The market breadth was strong. On the BSE, 2342 shares rose and 1057 shares fell. A total of 135 shares were unchanged.

The Federal Open Market Committee (FOMC), the US Federal Reserve`s policy-setting committee, will begin its two-day meeting later today. The outcome of the FOMC meeting is critical as it includes projections, which could set the path of monetary policy for the next few months. Traders are anticipating another sharp rate hike, third consecutive, from the US central bank to tame the rising inflation.

Global markets:

The Dow Jones index futures were up 111 points, indicating a positive opening in the US market today.

Shares in Europe and Asia advanced across the board Tuesday as Japan`s inflation accelerated and China kept its loan prime rate on hold.

Core consumer prices in Japan rose 2.8% in August from a year ago, government data showed. That`s the fastest growth in nearly eight years, and the fifth consecutive month where inflation has exceeded the central bank`s target of 2%.

The People`s Bank of China kept its one-year and five-year loan prime rates (LPR) unchanged, in line with predictions. The one-year loan prime rate remains at 3.65%, and the five-year rate closely tied to home mortgages stands at 4.3%.

Meanwhile, China`s commercial hub of Shanghai on Tuesday (20 Sept) launched eight infrastructure projects with total investment of 1.8 trillion yuan (US$257 billion), state media said. The projects involve the development of new energy and securing people`s livelihoods, including urban transit, railways and housing improvement, reports added.

US stocks ended higher on Monday, as investors turned their attention to this week`s policy meeting at the Federal Reserve and how aggressively it will hike interest rates.

Investors prepared for an important week, lined up with 13 central bank meetings, with expectations of interest rates rising globally and an ultra-hawkish monetary tightening by the US Fed`s meeting on Wednesday, followed by the Bank of Japan and Bank of England on the next day.

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