New Delhi: Equity indices rose for the second consecutive session on Wednesday with the benchmark BSE Sensex Financials, banking and auto stocks rose over 1,000 points, led by gains.
The 30-share BSE index jumped 1,016 points, or 1.76 per cent, to end at 58,650; while the broad NSE Nifty Closed 293 points or 1.71 per cent at 17,470.
Top gainers in the Sensex pack include Bajaj Finance, Maruti, SBI, Bajaj Finserv, Sun Pharma and Asian Paints, with their shares rising 3.62 per cent.
On the NSE platform, all sub-indices ended in the green with Nifty PSUs Bank, Financial Services, Auto, IT rising up to 2.57 per cent.
With this, the BSE Sensex climbed 1,903 points in the last two sessions.
Here are the top reasons behind the boom:
* Benefits in all areas
Auto, banking, information technology and banking stocks all saw strong gains.
At the closing bell, the Nifty Auto index was up 2.31 per cent, while the Nifty IT and Bank indices were up 1.95 per cent and 1.82 per cent, respectively.
* RBI maintains status quo, prioritizes development
The Reserve Bank of India (RBI) kept its prime lending rate at a record low for the 9th time in a row, prioritizing growth amid inflation and risks from the new Omicron coronavirus variant.
RBI Governor Shaktikanta Das, in his policy address, said there is a need for continued support for a sustainable recovery, given private consumption, which he said is still below pre-pandemic levels.
Amar Ambani, head of institutional equities, Yes Securities, told Reuters news agency, “It seems that the RBI does not want to tinker too much with policy rates, given the now nascent economic recovery and the still uncertainties of the pandemic.” ”
*positive global signal
The MSCI World Equity Index, which tracks stocks in 50 countries, was up 0.2 percent — the highest since November 26, when O’Micron fears hit markets for the first time.
Asian stocks climbed nearly two-week highs on Wednesday, extending a global relief rally as investors indicated the Omicron version of the coronavirus could be less disruptive to the world economy than previously feared.
US S&P 500 and Nasdaq futures were also up 0.3 per cent and 0.4 per cent, respectively, while pan-European Euro Stoxx 50 futures were flat.
* Easing concerns at Omicron
Bulls were buoyed by positive sentiment in global markets amid reports that the new coronavirus strain is unlikely to be more severe than the delta version, allaying market concerns about its economic impact.
“The continuation of a liberal policy stance by RBI by holding rates in line with positive global cues also benefited the bulls, while the central bank decided to increase variable reverse repo rate auctions to rebalance liquidity,” S Ranganathan, Head of Research LKP Securities told news agency PTI.
He said the sectoral indices and advance-fall showed signs of bullishness as market breadth was healthy with small and midcaps also participating in the rally.
(with inputs from agencies)
The 30-share BSE index jumped 1,016 points, or 1.76 per cent, to end at 58,650; while the broad NSE Nifty Closed 293 points or 1.71 per cent at 17,470.
Top gainers in the Sensex pack include Bajaj Finance, Maruti, SBI, Bajaj Finserv, Sun Pharma and Asian Paints, with their shares rising 3.62 per cent.
On the NSE platform, all sub-indices ended in the green with Nifty PSUs Bank, Financial Services, Auto, IT rising up to 2.57 per cent.
With this, the BSE Sensex climbed 1,903 points in the last two sessions.
Here are the top reasons behind the boom:
* Benefits in all areas
Auto, banking, information technology and banking stocks all saw strong gains.
At the closing bell, the Nifty Auto index was up 2.31 per cent, while the Nifty IT and Bank indices were up 1.95 per cent and 1.82 per cent, respectively.
* RBI maintains status quo, prioritizes development
The Reserve Bank of India (RBI) kept its prime lending rate at a record low for the 9th time in a row, prioritizing growth amid inflation and risks from the new Omicron coronavirus variant.
RBI Governor Shaktikanta Das, in his policy address, said there is a need for continued support for a sustainable recovery, given private consumption, which he said is still below pre-pandemic levels.
Amar Ambani, head of institutional equities, Yes Securities, told Reuters news agency, “It seems that the RBI does not want to tinker too much with policy rates, given the now nascent economic recovery and the still uncertainties of the pandemic.” ”
*positive global signal
The MSCI World Equity Index, which tracks stocks in 50 countries, was up 0.2 percent — the highest since November 26, when O’Micron fears hit markets for the first time.
Asian stocks climbed nearly two-week highs on Wednesday, extending a global relief rally as investors indicated the Omicron version of the coronavirus could be less disruptive to the world economy than previously feared.
US S&P 500 and Nasdaq futures were also up 0.3 per cent and 0.4 per cent, respectively, while pan-European Euro Stoxx 50 futures were flat.
* Easing concerns at Omicron
Bulls were buoyed by positive sentiment in global markets amid reports that the new coronavirus strain is unlikely to be more severe than the delta version, allaying market concerns about its economic impact.
“The continuation of a liberal policy stance by RBI by holding rates in line with positive global cues also benefited the bulls, while the central bank decided to increase variable reverse repo rate auctions to rebalance liquidity,” S Ranganathan, Head of Research LKP Securities told news agency PTI.
He said the sectoral indices and advance-fall showed signs of bullishness as market breadth was healthy with small and midcaps also participating in the rally.
(with inputs from agencies)
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