Sensex jumps 1,040 points amid positive global cues; Nifty ends above 16,950 – Times of India

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NEW DELHI: Equity indices surged on Wednesday with the benchmark BSE sensex rising over 1,000 points led by gains across sectors.
The 30-share BSE index jumped 1,040 points or 1.86 per cent to close at 56,817. While, the broader NSE Nifty settled 312 points or 1.87 per cent higher at 16,975.
Ultra Cemco, Axis Bank, IndusInd Bank and HDFC were the major gainers in the sensex pack rising as much as 4.69 per cent. Twenty-eight out of 30 stocks finished in green.
Whereas, Sun Pharma and Power Grid were the only losers.
Here’s what led to surge in markets:
Broad-based buying across sectors
The Nifty Auto Index gained 2.2 per cent, closing higher for a third straight session. while, Nifty Bank index was up 2.1 per cent at close.
All other major sub-indexes ended in positive territory, with the Nifty energy index and the Nifty Metal Index rising 1.79 per cent and 2.63 per cent, respectively, tracking a surge in commodity prices.
Shares of Paytm parent One 97 Communications snapped a three-day losing streak to close 7.2 per cent higher. The digital payments company had slumped to a record low on Tuesday as regulatory scrutiny on the firm tightened.
Positive cues from global markets
World stocks recovered ground on Wednesday as markets watched for signs of light in the Ukraine conflict.
Ukrainian President Volodymyr Zelenskyy said on Wednesday peace talks between Russia and Ukraine were sounding more realistic but more time was needed, as Russian air strikes killed five people in the capital Kyiv and the refugee tally from Moscow’s invasion reached 3 million.
Russia’s foreign minister Sergei Lavrov also said some formulations of agreements with Ukraine were close to being agreed.
The MSCI world equity index rose 0.87 per cent, moving away from one-year lows hit in the previous session. S&P futures gained 0.79 per cent after US stocks enjoyed a relief rally overnight on Wall Street, driven by hopes of a resolution in Ukraine.
European stocks gained 2.2 per cent and MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 4.2 per cent after China’s Vice Premier Liu He said Beijing will roll out more measures to boost the Chinese economy, as well as favourable policy steps for capital markets.
US Fed meet in focus
Investors are expecting the US Federal Reserve to raise interest rates by at least 25 basis points amid surging prices later on Wednesday. Traders will also be closely watching the Fed for details on how it plans to end its bond-buying programme.
US 10-year Treasury yields rose to 2.204 per cent on the Fed rate hike hopes, their highest since June 2019. The five-year yield rose to 2.149 per cent, its highest since May 2019.
Germany’s 10-year government bond yield rose to its highest since Nov. 2018 at 0.387 per cent.
Domestic investors will keep a close watch on Fed’s stance and take cues on what it would mean for emerging economies.
(With inputs from global markets)



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