Reversing a nine-session falling streak, the BSE Sensex rebounded 404 points on Wednesday as investors snapped up recently hammered stocks amid optimism in global markets over the US-China trade talks.
After a firm opening, the 30-share index stayed in the positive terrain throughout the session before finally finishing at 35,756.26, up 403.65 points, or 1.14%.
The broader NSE Nifty soared 131.10 points, or 1.24%, to 10,735.45.
In the past nine sessions, the Sensex had lost 1,622.62 points, while the Nifty cracked 465.05 points over eight trading days.
Metal, IT and banking counters chalked up smart gains Wednesday, with Vedanta topping the Sensex winners list with a jump of 4.67%.
Other gainers included Tata Steel, ONGC, NTPC, Yes Bank, Infosys, Sun Pharma, Bharti Airtel, SBI, Bajaj Finance, L&T and RIL, rising up to 4.13%.
On the other hand, Hero MotoCorp, HUL, M&M, Bajaj Auto and IndusInd Bank fell up to 0.56%.
All the BSE sectoral indices finished in the green, led by metal (2.99%), basic materials (2.24%) and oil and gas (2.19%).
“The market continues to fight the wall of worry, and bulls appear to be unwilling to give up the fight, as Indian equities had a strong day, up 1.3%,” said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.
Commodities and metals led the gains, alongside IT and energy, as investors are expecting a favourable outcome of the US-China trade talks, he added.
Broader indices too ended positive, with the BSE Midcap and Smallcap rising up to 0.91%.
Domestic institutional investors (DIIs) were net buyers to the tune of ₹1,163.85 crore Tuesday, while foreign institutional investors (FIIs) sold shares worth a net of ₹813.76 crore, provisional data available with BSE showed.
Global markets spurted on hopes of a positive outcome of the ongoing U.S.-China trade negotiations.
U.S. President Donald Trump on Tuesday said the negotiations were going very well, but refrained from committing any extension of the March 1 deadline to arrive at an understanding.
In Asia, Hong Kong’s Hang Seng jumped 1.01%, Korea’s Kospi rose 1.09%, Japan’s Nikkei ended 0.60% higher and Shanghai Composite Index gained 0.20%.
In the Eurozone, Frankfurt’s DAX was up 0.40%, Paris CAC 40 rose 0.09%, and London’s FTSE was up 0.05% in early deals.
The benchmark Brent crude futures fell 0.44% to $66.16 per barrel.
Meanwhile, the rupee appreciated 26 paise to 71.08 against the U.S. dollar intra-day.
