Equity indices clawed back lost ground on Wednesday after a four-session falling spree as investors took heart from a decline in new coronavirus cases in China and the Indian government’s assurance on tackling the economic impact from the epidemic.
Starting off on a strong footing, the BSE barometer gained strength during the session to touch a high of 41,357.16. The index finally settled at 41,323, clocking a gain of 428.62 points or 1.05%.
Likewise, the NSE gauge Nifty shot up 133.40 points or 1.11% to close at 12,125.90.
Market heavyweight Reliance Industries spurted 2.60%, accounting for the majority of the Sensex gains. Other winners included Bajaj Finance, HUL, ONGC and HDFC, rising up to 2.79%. On the other hand, Sun Pharma, TCS, Bharti Airtel, L&T and IndusInd Bank shed up to 1.33%.
Finance Minister Nirmala Sitharaman on Tuesday met representatives from various sectors, including pharmaceuticals, textiles, chemicals, electronics and IT hardware, solar, auto, surgical equipment, and paints, to review the situation following the outbreak of the deadly virus in China. She said the government would soon announce measures to deal with the impact of the coronavirus outbreak on the domestic industry.
“Positive cues were witnessed in the market on hopes that the government is planning to consider some relief measures for the ailing telecom players. On the global front, there is a decrease in new virus cases and close to 80%of the Chinese enterprises are back to work indicating a possible economic recovery,” said Vinod Nair, head of research at Geojit Financial Services.
Sectorally, BSE energy, healthcare and oil and gas rose as much as 2.37%. All 19 sectoral indices closed in the green on the BSE. In the broader market, BSE smallcap and midcap indices jumped 1.41% and 1.34% respectively, outperforming the benchmark.
The forex market was closed on account of Chhatrapati Shivaji Maharaj Jayanti.
In Asia, markets closed higher following reports that China saw fewer fresh coronavirus cases. Bourses in Europe too were trading higher in opening deals.