sensex today: Sensex zooms 1,148 points; Nifty settles near 15,250: Top reasons behind the surge

NEW DELHI: Equity indices continued to surge for third straight session on Wednesday with the benchmark BSE sensex rising over 1,100 points as banking and financial stocks jumped.
The 30-share BSE index closed 1,148 points or 2.28 per cent higher at 51,445; while the broader NSE Nifty soared 327 points or 2.19 per cent to settle at 15,246.
Top gainers in the sensex pack included Bajaj Finserv, Reliance Industries, Bajaj Finance, HDFC, ICICI Bank and Axis Bank with their shares up as much as 4.87 per cent.
Maruti Suzuki India, Bajaj Auto and Mahindra & Mahindra were the only stocks that finished in red.
On the NSE platform, except for Nifty Auto, all other sub-indices closed in green with Nifty Metal outperforming the index by rising as much as 3.34 per cent.
Here are the top reasons behind the surge:
* Surge in banking, financial and metal stocks
Domestic markets jumped on back on gains in banking and financial stocks. Private bank index on Nifty surged 2.75 per cent, while the PSU bank index rose 3.16 per cent.
Nifty Metal also extended gains by rising 3.34 per cent. The index had surged 24.2 per cent in February and is up more than 6 per cent in March amid a rise in commodity prices.
* Positive global cues
Stock markets in Europe and Asia rose as investors took heart from easing in bond yields. This has alleviated worries over possible interest rate hikes.
However, expectations for stronger economic growth in coming months continue to fuel worries that interest rates will head higher.
In Asian trading, Hong Kong’s Hang Seng rose 2.7 per cent to 29,792.81. In Tokyo, the Nikkei 225 added 0.5 per cent to 29,559.10, while the Kospi in Seoul picked up 1.3 per cent to 3,082.99. The Shanghai Composite index advanced 2 per cent to 3,576.90.
* India’s vaccine drive
Investor sentiments also turned positive as India continued to vaccinate masses against the Covid-19 pandemic.
Stocks gained on assurances from the government that it had enough Covid-19 vaccine doses to cover its population.
The government had said on Tuesday there were plenty of Covid-19 vaccines for the country even though it has sent quantities abroad.
* Upbeat economic growth
Domestic markets have gained more than 1 per cent everyday this week, following an expansion of the country’s vaccination drive and upbeat domestic economic growth. Meanwhile, while easing bond yields also boosted risk appetite.
“The bias is still positive. The way the vaccine drive is progressing is definitely a comforting factor,” Ajit Mishra, vice president, research at Religare Broking told news agency Reuters.
Services activity expanded at the fastest rate in a year during February, while employment fell further and companies noted the sharpest rise in overall expenses, a monthly survey said.
(With inputs from agencies)

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *