Domestic stock markets recovered early losses to push higher on Wednesday, led by gains in banking, financial services and automobile shares. The S&P BSE Sensex index jumped as much as 405.02 points from the weakest level of the day at 39,450.82 to touch 39,858.35 on the upside in mid-morning deals. The broader NSE Nifty 50 benchmark climbed to as high as 11,733.80, having declined to 11,629.35 earlier compared to its previous close of 11,662.40. Losses in IT and metal shares, however, limited the upside. (Track Sensex, Nifty)
At 10:01 am, the Sensex traded 282.09 points – or 0.71 per cent – higher at 39,856.66, while the Nifty was up 70.45 points – or 0.60 per cent – at 11,732.85.
Titan, Reliance Industries, UPL, ONGC and Maruti Suzuki India, trading between 1.43 per cent and 4.64 per cent higher, were the top gainers in the Nifty basket of 50 shares.
On the other hand, Bajaj Finance, Bajaj Finserv, Bharat Petroleum, GAIL and Coal India, trading between 1.03 per cent and 3.94 per cent lower, were the worst hit among 24 laggards in the benchmark index.
Reliance Industries, HDFC Bank and Titan were the biggest boosts to Sensex.
Analysts awaited corporate earnings from heavyweights and the outcome of a policy review by the RBI due in the coming days.
The Reserve Bank of India’s Monetary Policy Committee will to begin a three-day review later in the day. The central bank is widely expected to hold key interest rates at existing levels in the upcoming policy statement, due on Friday, in a bid to tackle high inflation.
Tata Consultancy Services (TCS) – the country’s largest IT company – will kick of the earnings season by reporting its financial results for the July-September period.
Equities in other Asian markets dropped on Wednesday, led by major airlines, after US President Donald Trump said his administration would abandon talks with congressional Democrats over proposals to spend at least $1.6 trillion in additional coronavirus relief funds.
A key component was a new $25-billion bailout for US passenger airlines to keep tens of thousands of workers on the job for another six months. A prior $25-billion airline payroll support program expired on September 30.