Stock markets on Wednesday rallied further on positive global cues and improved business sentiment, especially the surge in the services sector activity to a seven-year high. The BSE gauge Sensex rose 0.87 per cent or 353.28 points higher at 41,142.66 on the eve of the monetary policy announcement by the Reserve Bank of India. The NSE Nifty rose 109.50 points, or 0.91 per cent, to settle at 12,089.15 — taking the 3-day gains to 427.30 points or 3.66 per cent.
With this gain, the Sensex has gained over 1,406 points in three session after the 988-point plunge on February 1 when Finance Minister Nirmala Sitharaman announced the Budget. Market gains were driven mainly by rate-sensitive stocks ahead of the RBI’s monetary policy announcement on Thursday. Besides, reports of a breakthrough in coronavirus treatment enthused investors.
Eye on Q3 results, global events
Indian markets are mirroring the global markets and trading on a higher note powered by rate-sensitive stocks . The market’s focus will turn to how global events and Q3 results span out.
Tata Steel, the top gainer in the Sensex pack, rose 5.14 per cent, followed by Bharti Airtel, HDFC, TCS, L&T and Reliance Industries. Sectorally, BSE metal, telecom, realty, industrials, capital goods, energy, oil and gas, finance, FMCG and IT indices ended up to 2.90 per cent higher, while power and utilities indices slipped in the red. Broader BSE midcap and smallcap indices rallied up to 1.35 per cent.
Analysts said positive global cues persisted after China promised to unveil more steps to support an economy jolted by a coronavirus outbreak. With reports of a breakthrough in coronavirus treatment doing the rounds, global stocks surged. Bourses in Shanghai, Hong Kong, Tokyo and Seoul settled up to 1.25 per cent higher.
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