Indian benchmarks snapped a four-day losing streak on Wednesday as a decline in new COVID-19 cases in China along with expectations of action by the Indian government to limit the impact of the outbreak revived investor interest in equities.
The 30-share Sensex gained 428.62 points, or 1.05%, to close at 41,323. It closed just a tad lower than the day’s high of 41,357.16.
The rally was visible in many side counters as well with more than 1,500 stocks gaining ground as against around 1,000 stocks that ended in the red.
Within the Sensex pack, 22 stocks gained ground with Reliance Industries, HDFC, HDFC Bank, HUL, Bajaj Finance and ICICI Bank contributing the maximum to the day’s gains.
Meanwhile, the broader Nifty settled the day at 12,125.90, gaining 133.40 points, or 1.11%.
Policy stimulus
“A decline in the number of new COVID-19 cases in China and mounting expectations for more policy stimulus boosted global stock markets on Wednesday,” said Deepak Jasani, head, retail research, HDFC Securities.
“Positive sentiment (in India) were also created after the Finance Minister said the government would unveil measures to limit the impact of the COVID-19 outbreak,” he added.
Finance Minister Nirmala Sitharaman had met industry representatives and assured that the government would take steps to manage the impact of COVID-19 on the domestic industry.
Elsewhere in Asia, the benchmark equity indices of Hong Kong, South Korea, Taiwan, Japan and Indonesia, among others, all gained ground on Wednesday.
Back in India, foreign portfolio investors (FPIs) were net sellers at about ₹191 crore while their domestic counterparts bought shares worth almost ₹600 crore.
The pace of foreign investment in Indian shares have slowed a bit in the recent past with the current month flows, till date, pegged at a little under ₹9,500 crore.
The previous month saw such investors put in a little over ₹12,100 crore.
