Sensex, Nifty rebound from election jitters; jump over 3%
Mumbai: Rebounding from their worst single-day slide in four years, benchmark stock indices Sensex and Nifty soared over 3 per cent each on heavy value buying by investors after NDA alliance partners started talks on government formation.
The 30-share BSE Sensex jumped 2,303.19 points or 3.20 per cent to settle at 74,382.24 on value buying in banking, auto and oil shares. All Sensex shares closed in the green. During the day, it zoomed 2,455.77 points or 3.40 per cent to 74,534.82.
The NSE Nifty climbed 735.85 points or 3.36 per cent to 22,620.35 with all its constituents ending with gains. During the day, the benchmark soared 785.9 points or 3.59 per cent to 22,670.40.
Heavy buying in HDFC Bank, ICICI Bank and Reliance Industries helped benchmark indices log sharp gains. Investors became richer by Rs 13.22 lakh crore on Wednesday with markets making a strong comeback.
Senior leaders of the BJP-led National Democratic Alliance deliberated on the details of government formation at a meeting here on Wednesday, a day after the ruling coalition won a majority in the Lok Sabha election which paved the way for a third term for Prime Minister Narendra Modi.
Coalition partner TDP also affirmed that it was with the NDA assuaging investors’ concerns over government formation and triggering a sharp value buying in recent losers.
Among Sensex companies, IndusInd Bank jumped over 7 per cent. Tata Steel, Mahindra & Mahindra, Bajaj Finance, Kotak Mahindra Bank, Hindustan Unilever, HDFC Bank, Axis Bank and JSW Steel also emerged as big gainers.
In the broader market, the BSE midcap gauge jumped 4.41 per cent and smallcap index rallied 2.93 per cent.
All the indices ended in the green, with telecommunication soaring 6.01 per cent, services jumping 5.74 per cent, metal (5.36 per cent), auto (4.50 per cent), commodities (4.48 per cent) and consumer discretionary (4.29 per cent).
As many as 2,597 stocks advanced while 1,221 declined and 100 remained unchanged.
In Asian markets, Seoul settled with gains while Tokyo, Shanghai and Hong Kong ended lower.
European markets were trading in the green. US markets ended in positive territory on Tuesday.
Global oil benchmark Brent crude climbed 0.14 per cent to USD 77.61 a barrel.
