Global markets strengthened as investors digested hawkish comments from the Federal Reserve and the European Central Bank’s biggest-ever key interest rate hike, with India’s stock benchmark getting off to a strong start on Friday, led by cross-sector buying, with the Sensex breaking the 60,000 mark.

Both major indexes were up 0.7% in the first few minutes of trading. The 30-stock index rose 431.6 points to 60,119.8, breaking the psychologically important 60,000 level for the first time since August 19. The Nifty50 climbed to 17,926, up 127.2 points from its previous close.

All Nifty50 constituents opened positive, with HDFC Bank edging down 0.1%. Hindalco, ICICI Bank, Mahindra & Mahindra, Tata Motors and Tech Mahindra were among the top gainers.

Nestle, Tata Steel, Kotak Mahindra Bank, Wipro and Eicher – up about 1% each – were the biggest blue-chip gainers.
Reliance, ICICI Bank, Infosys and Hindustan Unilever were the biggest contributors to gains in both indexes. SBI shares hit an all-time high, rising Rs 9.1 or 1.7% to an unprecedented Rs 553.8 per share on the BSE.

“A 75bps rate hike by the Fed on September 21 will not surprise markets as they don’t think a deep recession will result from a big hike. That’s why global signs are turning slightly better,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

“Investors should continue to invest in this strong market even if valuations become expensive. Strong FII buying and short covering may come as a surprise,” he said. Overall market breadth favoured bulls, with BSE shares up 2,031 and down 930 in early trade.

Shares of other Asian markets started to strengthen after Wall Street banks and the healthcare sector led overnight gains. MSCI’s broadest Asian-Pacific shares index outside Japan last up 0.8%. Japan’s Nikkei 225 rose 0.6%.
S&P 500 futures rose 0.3%. On Thursday, the three major US stock indexes closed up 0.6-0.7%.