Here's what's driving the share market higher as the Sensex jumps by about 1% and the Nifty returns above 19,150

 Here's what's driving the share market higher as the Sensex jumps by about 1% and the Nifty returns above 19,150

Nifty and Sensex rise by about 1% as investors applaud the US Federal Reserve's decision to maintain interest rates at current levels.

Sensex gained around 600 points, while the wider Nifty reached 19,150, mirroring advances in other markets.

The decision by the US Fed to maintain interest rates was well-received by markets, and on November 2, benchmark indices Nifty and Sensex saw almost 1 percent gains, signalling the arrival of bulls on Dalal Street. As Fed Chair Jerome Powell signaled that the US central bank may be done with its most aggressive tightening cycle in four decades, risk-off sentiment in domestic markets subsided. Global market advances drove the wider Nifty to soar beyond 19,150, while the Sensex gained almost 600 points.

This is what's driving up markets.

Worldwide Markets

US markets were buoyed by Jerome Powell's dovish turn, as seen by the S&P 500 index, which closed more than 1% higher and momentarily crossed its 200-day moving average on November 1. The Nasdaq Composite gained 1.64 percent while the Dow Jones Industrial Average increased by 0.67 percent. In the meanwhile, the S&P/ASX 200 in Australia increased by 1.20 percent, getting closer to its highest point in over two weeks.

Rallying technology companies helped most Asian markets rise as well. Nikkei 225 in Japan gained 1.2 percent, extending gains into a third session after the Bank of Japan's less aggressive than anticipated statement. At opening, the Hong Kong Hang Seng index rose 1.43 percent, while the Kospi in South Korea surged over 2 percent.

Bond Returns

For the first time in two weeks, the US Treasury yield on the 10-year fell below 4.75 percent, continuing a trend that was started in the morning when the Treasury Department announced intentions to reduce the rate at which it would be selling long-term debt.