Extending Tuesday’s rally, benchmark Sensex on Wednesday surged nearly 241 points to close at a two-month high of 27,140 and Nifty reclaimed the 8,300-level on widespread buying triggered by a positive start of the earnings season and firm Asian cues. Investors cheered better-than expected Q3 numbers in IndusInd Bank along with bullish Asian stocks ahead of US President-elect Donald Trump’s news conference later in the day that will give his policy insight.
Besides, investors widened their bets on optimism that upcoming general budget - to be unveiled next month- would contain incentives for corporates, which will help boost the economy. Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services ltd, said, “Indian stocks opened on a firm note as banking stocks were propped up by IndusInd Bank as well as South Indian Bank’s results which lent positivity at the start of Q3 season. Metal sector got a shot in the arm following reports of reduction in Chinese production.”
IT stocks remained on the back foot ahead of US President elect Donald Trump’s first press conference scheduled in the day, in the backdrop of reintroduction of bill on visa restrictions, James added.
The 30-share Sensex resumed higher at 26,978.44 and quickly breached the 27,000-mark to hit a high of 27,174.87 before winding up at 27,140.41, scoring a notable rise of 240.85, or 0.90 per cent. The Sensex had closed at 27,517.68 on November 10 last year. The NSE Nifty also climbed 92.05 points, or 1.11 per cent, to end at 8,380.65 after trading between 8,389 and 8,322.25. (the key index had closed at 8,525.75 on November 10, 2016).