Sensex breaks key resistance level, shoots up 241 points

The benchmark Sensex broke above 200-day moving average (DMA) for the first time in a month on Wednesday, signalling a rally ahead of Union Budget. The Sensex gained 240.85 points, or 0.90%, closing at 27140.41. Nifty climbed up 92.05 points, or 1.11%, to end at 8380.65. Experts had predicted stocks will rally above 200 points, in the wake of indices breaking the daily average.

A positive start to the earnings season with IndusInd Bank delivering better numbers, and bullish Asian stocks ahead of Donald Trump’s news conference later on Wednesday, triggered widespread buying.

Stocks of banks, metal, among others rallied in anticipation of positive measures in the Union Budget 2017. While Tata Steel gained 11%, Coal India  saw its stocks rising 5.41%. Union Bank and IndusInd Bank gained 7.22% and 6.16%, respectively. The BSE India Metal index climbed up 4.4%. The mid-cap and small-cap shares also ended with substantial gains.

Besides, investors widened their bets on optimism that upcoming general budget would contain incentives for corporates, that will buoy economy.

Broader markets performed well with gains covering in metal, banks, finance, capital goods, utilities and power sectors.