Market benchmark Sensex rallied 231.80 points on Wednesday, driven by gains in index heavyweights HDFC Bank, ITC, RIL and Infosys.
The 30-share BSE index settled 231.80 points, or 0.57 per cent, higher at 41,198.66. It hit an intra-day high of 41,334.86 and a low of 41,108.19.
Likewise, the broader NSE Nifty closed 73.70 points, or 0.61 per cent, up at 12,129.50.
In the Sensex pack, Bajaj Finance was the biggest gainer, rising 4.95 per cent, followed by Nestle India, ITC, Infosys and NTPC.
On the other hand, TCS, HDFC, Sun Pharma, ICICI Bank, Bharti Airtel and Axis Bank ended in the negative territory.
According to traders, recovery in global equities and hopes of growth-boosting measures in the upcoming Budget buoyed market sentiment.
Further, short-covering ahead of January derivatives expiry also lifted key indices, they said.
Bourses in Japan and South Korea ended with gains, while Hong Kong closed with sharp losses as the market opened after the Lunar New Year break. Bourses in China remained closed.
Stock exchanges in Europe opened on a positive note, even as investors assessed the risks posed by the Wuhan coronavirus.
Brent crude oil futures rose 0.71 per cent to USD 59.93 per barrel.
On the currency front, the Indian rupee appreciated by 7 paise to settle at 71.24 against the US dollar following gains in the domestic equity market.
Forex traders said rupee consolidated in a narrow range as market participants are assessing the economic implications of the coronavirus outbreak and awaiting cues from the Union Budget.
At the interbank foreign exchange market, the local currency opened at 71.23. During the day, the local unit saw a high of 71.17 and a low of 71.29. The domestic unit finally settled at 71.24, up 7 paise from its previous close.
The rupee had settled at 71.31 against the American currency on Tuesday.
“Indian rupee gained as risk sentiment recovered amid a rebound in the global and domestic equities. Market players assessing the economic implications of the coronavirus outbreak,” said VK Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.
Sharma further said that strong foreign fund flows also supported strength in rupee as they have bought USD 2.21 billion equities so far this month.
BSE to shift 30 stocks to restricted trading group, NSE 13 scrips
Leading stock exchanges BSE and NSE will shift several scrips to the restricted trading segment from Thursday to ensure safety of investors in the capital markets.
BSE will shift as many as 30 stocks, including McDowell Holdings, Emami Realty, United Van Der Horst, Hindustan Everest Tools, Technofab Engineering and Lactose India, to the trade-for-trade segment represented by T or XT groups. At the same time, NSE would transfer 13 scrips to the trade-for-trade segment segment on its platform.
In this segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.
With a view to take preventive surveillance measure to ensure market safety and safeguard the interest of the investors, BSE and NSE have decided to move shares of these companies to T or XT Group with effect from January 30.