Sensex jumps 575 points, Nifty ends above 25,300 after rally in Asian peers

Benchmark Sensex spurted by 575 points while Nifty closed above 25,300 on Wednesday on buying in banking and financial shares, driven by a rally in Asian and European markets amid hopes of a rate cut by the US Federal Reserve later this month.

The 30-share BSE Sensex jumped 575.45 points or 0.70 per cent to settle at 82,605.43. During the day, it surged 697.04 points or 0.84 per cent to 82,727.02.

The 50-share NSE Nifty climbed 178.05 points or 0.71 per cent to 25,323.55.

Among Sensex firms, Bajaj Finance and Bajaj Finserv were the biggest gainers. Asian Paints, Larsen & Toubro, Trent, UltraTech Cement, Eternal and Adani Ports were also among the winners.

However, Tata Motors, Infosys, Tech Mahindra and Axis Bank were among the laggards.

“The up move was driven by some easing in US-China trade tussle and a rebound in the rupee from recent lows. Additionally, a stable start to the earnings season and the reaffirmation of rating agencies’ positive outlook on India helped counter lingering worries about global growth and trade tensions,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

Sector-wise, most indices ended in the green, with realty, financials, and metals leading the advance..

The broader market also remained constructive, as both midcap and smallcap indices posted healthy gains, supported by strong market breadth, Mishra said.

The BSE midcap gauge jumped 1.07 per cent and smallcap climbed 0.78 per cent.

All sectoral indices ended higher. Realty surged 3.06 per cent, telecommunication (1.94 per cent), consumer durables (1.20 per cent) services (1.17 per cent), utilities (1.15 per cent), power (1.05 per cent) and financial services (1.03 per cent).

As many as 2,503 stocks advanced while 1,659 declined and 164 remained unchanged on the BSE.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng settled sharply higher. Markets in Europe were trading in the positive territory.

US markets ended on a mixed note on Tuesday.

“The national market inched higher after two days of selling; a dovish comment by the Fed chair on rates and considering an end to its quantitative tightening sparked the global market sentiment,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

Global oil benchmark Brent crude dipped 0.18 per cent to USD 62.28 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,508.53 crore on Tuesday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 3,661.13 crore, according to exchange data.

On Tuesday, the Sensex declined 297.07 points or 0.36 per cent to settle at 82,029.98. The Nifty dipped by 81.85 points or 0.32 per cent to 25,145.50.