Mumbai- The Sensex rallied 620 points while the Nifty reclaimed the 17,100-level on Wednesday as investors piled into recently-battered banking, finance and energy counters amid a recovery in global equities despite lingering concerns over the Omicron coronavirus variant.
A sharp jump in the rupee and encouraging macroeconomic data further enthused domestic investors, traders said.
The 30-share BSE Sensex rallied 619.92 points or 1.09 per cent to close at 57,684.79. Similarly, the NSE Nifty surged 183.70 points or 1.08 per cent to 17,166.90.
IndusInd Bank was the top gainer in the Sensex pack, spurting 5.73 per cent, followed by Axis Bank, SBI, Tech Mahindra, Maruti and Reliance Industries.
On the other hand, Dr Reddy’s, UltraTech Cement, Sun Pharma, Bharti Airtel, Titan and Kotak Bank were among the laggards, shedding up to 1.58 per cent.
“After the sharp sell-off in the global markets yesterday, Indian equities reversed course following recovery in global markets and strong domestic GDP data. India’s Q2 GDP recorded a growth of 8.4 per cent as economic activity moved towards normalcy after the impact of the second wave.
“Though the Fed chair’s comment on speeding up the pace of the bond-buying taper plan kept investors cautious along with the concerns of Omicron, the global markets recovered sharply today,” said Vinod Nair, Head of Research at Geojit Financial Services.
India’s manufacturing sector activities gained further strength in November, and witnessed the strongest increase in production and sales since February on improving market conditions, a monthly survey said on Wednesday.
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI), increased from 55.9 in October to 57.6 in November, signalling the strongest improvement in the health of the sector in ten months.
Besides, GST mop-up in November grew 25 per cent to Rs 1.31 lakh crore — second highest since its implementation — indicating economic recovery with normalisation of business activity and increased compliance.
This is the fifth month in a row that the revenues from goods sold and services rendered was over Rs 1 lakh crore.
Ajit Mishra, VP – Research, Religare Broking, said the Omicron variant remains a worrying factor for markets worldwide.
“At the same time, favourable domestic data may result in some intermediate relief but the possibility of any major directional move seems unlikely. Keeping all in mind, it’s prudent to stay cautious and wait for further clarity,” he noted.
Sector-wise, BSE metal, energy, bankex, auto and finance indices climbed as much as 2.40 per cent, while healthcare, consumer durables and telecom finished lower.
The BSE midcap and smallcap indices climbed up to 1 per cent.
Global markets clawed back some lost ground on bargain hunting, even as multiple countries imposed travel restrictions to contain the spread of the Omicron variant.
Elsewhere in Asia, bourses in Hong Kong, Shanghai, Seoul and Tokyo ended with gains.
Stock exchanges in Europe too were trading on a positive note in mid-session deals.
International oil benchmark Brent crude advanced 3.96 per cent to USD 71.97 per barrel.
The rupee gained 22 paise to close at 74.91 against the US dollar on Wednesday amid a weak American currency in the overseas market.
Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 5,445.25 crore on Tuesday, as per exchange data.