Stock markets on Wednesday remained bullish as the investor sentiment was buoyed by a slew of upbeat quarterly results and expectations of a shift in the Reserve Bank’s monetary policy stance. The BSE Sensex vaulted 358.42 points, or 0.98 per cent, to close at 36,975.23, while the broader NSE Nifty gained 128.10 points, or 1.17 per cent, to 11,062.45.
Both the indices closed at five-month highs, led by financial services, IT and metal stocks, amid persistent foreign fund inflows.
The RBI’s Monetary Policy Committee (MPC) began its three-day meet Tuesday to decide on key rates amid expectations that it may change its policy stance to ‘neutral’ from ‘calibrated tightening’ on low inflation footprint, even as a rate cut was ruled out by many experts. Shares of Cipla closed 3.75 per cent higher after posting December-quarter results, while Tech Mahindra which led gains in IT stocks after a strong quarterly perfroamnce, ended up 8.13 per cent.
Only two of the 30 Sensex stocks ended in the red — IndusInd Bank and Axis Bank, which slipped up to 0.54 per cent. Bajaj Finance, Tata Steel, ONGC, Bajaj Auto, ICICI Bank, NTPC, and RIL led the winners’ pack, spurting up to 4.34 per cent. Broader indices, however, ended on a mixed note. The BSE LargeCap index rallied 1.13 per cent, mid-caps slipped 0.12 per cent. Sectorally, metal, IT, energy and auto led the rally soaring up to 2.44 per cent.
“Domestic market rallied 1 per cent led by broad-based buying across sectors, Nifty breached its narrow trading band of 10650-10950 on expectation of a shift in RBI’s policy stance and strong FII inflows. Additionally, drop in bond yield and marginal strength in rupee added strength to this expectation,” said Vinod Nair, Head of Research, Geojit Financial Services.