Strong global cues and the end of uncertainty over assembly elections also brought the bulls out
Investors cheered the appointment of new Reserve Bank of India (RBI) governor as indices spurted 1.79% lifted by realty and banking stocks among others.
Strong global cues and the end of uncertainty over assembly elections also brought the bulls out.
Sensex remained in the green zone throughout the day and closed at 35779.07 soaring 629.06 points, or 1.79%. The 30-share index has gained 819.35 points in the last two sessions. The broader Nifty reclaimed 10700-mark surging 188.45 points, or 1.79%, to settle at 10737.60. This was one of the biggest rallies since October 28.
"They were a fair amount of participation in all sectors on Wednesday. The NBFC sector, which was not doing good for some time, has also done well. People are gaining confidence in this sector again. Cooling trade war cooling, strengthening of dollar and improving macros are also boosting the sentiment. Secondly, people believe that the corporate banks will also do well due to good macros now. Hence, we saw good buying in this sector. RBI open market operation (OMO) buying also added to positivity," Rahul Shah, vice president-equity advisory group at Motilal Oswal Financial Services, said.
Hero Motor Corp, YES Bank, Bharti Airtel, Adani Ports and Tata Motors contributed most to the Sensex, rallying as much as 7.57%.
The broader market also continued to cheer on Wednesday as both the BSE Midcap and Smallcap indices rose 2.53% and 2.46%, respectively.
The realty sector was the star of the day as it advanced above 4% in both the indices. The sectoral gainers were BSE Realty (4.07%), Auto (3.58%), Telecom (2.77%), Industrials (2.60%) and Consumer Discretionary (2.57%) and PSU banking stocks (2.08%) on Wednesday.
"There are no short-term concerns for the market anymore. The next direct concern will be the general elections next year. Market capitalisation went down by Rs 22 lakh crore last week and the midcap and smallcap m-cap was also down by around Rs 20 lakh crore. So there is a bargain buying right now. Secondly, after the two RBI governors left, the government has appointed someone who can understand recapitalisation well. So, the financial sector is gaining confidence now as they expect this can help the PSU banking sector. The banking sector is expecting a lakh crore recapitalisation right now," said G Chokkalingam, founder and managing director at Equinomics Research and Advisory.
As per the provisional data, the foreign institutional investors sold a share of Rs 1,299.43 on Wednesday while the domestic institutional investors purchased shares worth Rs 1,121,29 crore on a net basis.
"There will be consolidation and rise in the market and I expect a 5% jump in next one to two months," Chokkalingam said.
Shah said, "Unless any major global sell-off happens, the market will continue to be in a good mood."
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "BSE")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}