The BSE benchmark Sensex jumped over 250 points and NSE Nifty breached the 11,000 mark in early trade on Wednesday led by gains in IT and metal stocks amid heavy buying by domestic and foreign institutional investors.
The 30-share index was trading 255.89 points, or 0.70%, higher at 36,872.70.
Similarly, the 50-share NSE Nifty reclaimed the 11,000 mark, rallying 81.40 points, or 0.74%, 11,015.75.
On Tuesday, the Sensex ended 34.07 points, or 0.09%, higher at 36,616.81; and the NSE Nifty edged up 22.10 points, or 0.20%, to 10,934.35.
“The Indian market is embracing for the monetary policy to be released on February 7; and majority of the economists now expect status quo against a rate cut sometime back,” said Paras Bothra, President, Equity Research, Ashika Group.
The RBI’s Monetary Policy Committee (MPC) began its three-day review meet on Tuesday.
“Foreign participation has certainly gained pace after the US Fed’s patient view and is expected to support stocks with strong underlying fundamentals,” he added.
In morning session on Tuesday, HCL Tech, NTPC, ONGC, RIL, Infosys, ICICI Bank, Asian Paints, Bajaj Finance, ITC and HDFC were the top gainers in the Sensex pack, rising up to 2%.
Meanwhile, Hero Bharti Airtel, IndusInd Bank, Tata Motors, Vedanta and L&T were the losers, shedding up to 1.33%.
On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of ₹420.65 crore Tuesday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 194.31 crore, provisional data available with BSE showed.
