Equity benchmarks registered their third biggest single-day gain on Wednesday on expectations that the government will soon announce an economic stimulus package even as a global rally acted as a catalyst.
The 30-share Sensex gained 1,861.75 points, or 6.98%, to close at 28,535.78.
The rally was primarily on the back of massive gains in index heavyweights Reliance Industries, HDFC twins — HDFC and HDFC Bank, Kotak Mahindra Bank and ICICI Bank.
The broader Nifty ended the day at 8,317.85, up 516.80 points or 6.62%. Incidentally, the India VIX index dipped nearly 8%.
“The recent positive announcements from the U.S. Fed and rising hopes of a stimulus package from the Indian government have lifted sentiments,” said Ajit Mishra, vice-president (Research), Religare Broking.
“We expect that volatility would remain high in the near term and any sustainable rally would largely depend upon how effectively we can contain the spread of coronavirus now with a 21-day nationwide lockdown in place,” said Mr. Mishra.
The U.S. government has approved a stimulus package worth a whopping $2 trillion that led to most markets witnessing strong gains on Wednesday.
In Asia, Nikkei gained over 8% while Hang Seng was up nearly 4%.
Back in India, the market breadth comprised almost equal number of gainers and declines as many side counters continued to experience weakness. On BSE, 1,186 stocks gained ground as against 1,023 declines. Most of the broader indices underperformed the benchmarks.
Foreign portfolio investors (FPIs), who have sold shares worth a massive ₹55,600 crore in March — highest ever in a single month — were net sellers at nearly ₹1,900 crore.
