Indian equity benchmarks made a strong comeback to recover the previous day's losses on Wednesday amid broad-based gains, led by financial, IT and oil & gas stocks. Dalal Street tracked strong gains across global equities as investors awaited the outcome of the Fed's scheduled policy review due later in the day.
The US central bank is widely to announce what could be the first hike in interest rates in the pandemic era. Globally, investors also continued to closely track news updates on the ongoing
Russia-Ukraine war and increasing
COVID cases in China that have triggered lockdowns.
Both headline indices finished the day with gains of 1.9 percent. The 30-scrip Sensex index jumped 1,039.8 points to end at 56,816.7 and the broader Nifty50 settled at 16,975.4, up 312.4 points from its previous close. On Tuesday, both had
halted a five-day-long winning run to three-month closing highs.
Investors grew richer by Rs 4.6 lakh crore on Wednesday as the market capitalisation of BSE-listed companies increased to Rs 256.2 lakh crore, exchange data showed.
UltraTech, Axis Bank, Bajaj Auto, IndusInd, Shree Cement, HDFC, Infosys and Hindalco -- closing between 2.6 percent and 4.6 percent higher -- were the top blue-chip gainers. Only three stocks in the Nifty50 pack finished below the flatline: Cipla (down 1.3 percent), Sun Pharma (0.4 percent) and Tata Consumer (0.1 percent).
Infosys, Reliance Industries, the HDFC twins and TCS were the biggest contributors to the gain in both headline indices.
Among sectoral indices, the Nifty Bank, Private Bank and Financial Services saw gains to the tune of two percent.
TCS, Infosys, Wipro, HCL Tech and Tech Mahindra clocked gains of around 2-3 percent, ahead of Accenture's quarterly results due on Thursday. The Nifty IT rose 1.8 percent.
The India VIX -- known in market parlance as the fear index -- dropped 9.8 percent to 24.1, its biggest single-day fall in a month. Late last month,
Russia's move to invade Ukraine had sent the gauge soaring to a 20-month high of almost 34.
Easing FII selling and crude prices are strengthening the domestic trend, which is supported by positive global cues and a strong bounceback in the China market in anticipation of stimulus, said Vinod Nair, Head of Research at Geojit Financial Services.
"World equities have stabilised factoring in a 25 basis-point hike by the Fed... An in-line policy outlook will be a relief to the market and we may see a drop in volatility," he said.
Broader markets surged in line with headline indices. The Nifty Midcap 100 gained two percent, and its smallcap counterpart 1.2 percent.
In the midcap and smallcap segments, Gujarat Ambuja, JK Paper, New India Assurance, Strides Pharma and IFB Industries -- rising around 4-13 percent -- were the top gainers. On the flipside, Future Retail, Home First, Carborundum, Anupam Rasayan and Valiant Organics -- declining 2-3 percent -- were the top losers.
Overall market breadth remained in favour of the bulls throughout the day, with an advance-decline ratio of almost 3:1 at the close as 1,502 stocks rose and 546 fell on NSE.
World markets
European shares began the day near two-week highs following a rally across Asia, after China said it will to roll out more stimulus to boost its economy. Optimism on the Ukraine-Russia peace talks also aided investor sentiment. The pan-European Stoxx index was up two percent at the last count.
S&P 500 futures were up 1.1 percent, suggesting a positive opening ahead on Wall Street.
Technical outlook
The Nifty is maintaining a higher-high-and-higher-low formation and heading towards 17,000-17,200 levels, according to Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
"The current texture is likely to continue unless the index slips below 16,750-16,700 levels, above which, it could rise up to 17,100-17,200 levels. Traders may prefer to take a caution stance if it slips below 16,750, which will increase the chances of it hitting 16,700-16,600 levels," he said.
