Stock indices gained smartly on Wednesday after falling for seven straight sessions, as investors were engaged in value-buying at low levels coupled with MSCI — an U.S. index compiler — decision to defer the inclusion of Chinese stocks in its emerging markets index.
The BSE 30-share Sensex surged 359.25 points or 1.36 per cent to close at 26840.50.
On the National Stock Exchange, the 50-share Nifty closed above the 8100-mark with a gain of 102.05 points or 1.27 per cent.
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Meanwhile, the Indian currency closed at 63.84 a dollar against its previous close of 63.92 on Tuesday and 64,08 on Monday.
“Despite the scepticism on near term earnings growth and expensive valuations, we remain optimistic about Indian equities in the long run,” said Atul Kumar, Head, Equity funds, Quantum AMC.
Passage of key reform bills including the Goods and Services Tax will be crucial over the next few months.
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“Given the expensive valuations, we continue to advocate a cautious stance while allocating incremental large sums to equities at the moment,” Mr. Atul Kumar added.
Sugar stocks rally
Sugar stocks staged a rally on Wednesday following the approval of interest-free loan worth Rs. 6,000 crore to the sugar sector by the Cabinet Committee on Economic Affairs.
Notable gainers on the BSE included Sakthi Sugars 12.66 per cent, Mawana Sugars (12.21 per cent), Bajaj Hindusthan (10.05 per cent), Simbhaoli Sugar (9.73 per cent), Oudh Sugar Mills (9.46 per cent), Andhra Sugars (7.67 per cent), Bannariamman Sugars (7.39 per cent), EID Parry (5.9 per cent), Dhampur Sugar (4.50 per cent) and Balrampur Chini (2.69 per cent).