Benchmarks Sensex and Nifty closed on a bullish note on Wednesday, following positive trend from overseas amid heavy buying in index heavyweights like Reliance Industries, Asian Paints, Nestle and Maruti Suzuki.
Sensex closed 742 points higher at 31,379 and Nifty ended 205 points higher at 9,187.
On the sectoral front, media stocks rose the most, with Nifty media closing 6.65% higher, followed by a 3% rise in energy and a 2.5% rise in FMCG and auto indexes. Meanwhile, PSU Bank, pharma and realty sectors were declining marginally.
Index heavyweight Reliance Industries' share price rose 12% intraday and closed 10.34% higher post the announcement that social media giant Facebook will be investing Rs 43,574 cr, to pick up a stake in company's telcom subsidiary Reliance Jio.
Ajit Mishra, VP - Research at Religare Broking said ," Today's surge was largely in response to the Reliance-Facebook deal and we may again see the selling pressure emerging at the higher levels. Needless to say, the COVID-19 updates combined with signals from the earnings front would dictate the market trend from hereon. Besides, the movement of crude oil and the currency market will also be in focus"
Earlier, indices opened flat but recovered and traded higher by the first hour of the session. Indices gained momentum with European and Asian indices turning to green territory in the afternoon session.
According to experts, markets traded higher today as investors hoped for the announcement of another economic relief package today from PM Modi's cabinet meeting, in the wake of novel coronavirus outbreak.
"We witnessed further strength in afternoon trade as US Senate approved the bill for a further package of $484bn," said S Ranganathan, Head of Research at LKP Securities.
European indices opened higher today, with FTSE and DAX rising over 1% each, and CAC trading 0.50% higher.
Asian counterparts were poised to track bullishness from overseas and traded marginally higher. While SGX Nifty climbed 2%, Kospi, Shanghai index closed 0.6% higher, followed flat to positive bias trend in Taiwan and Hang Seng.
Vinod Nair, Head of Research at Geojit Financial Services said,"The market also rallied on the expectation of a stimulus package to be announced soon. With European markets expecting ease in lockdown measures, Indian markets will also be looking forward to news regarding the peaking of infections, so that the economy may be opened for business as soon as possible.
Meanwhile, Indian Rupee, the local unit, ended stronger at 76.67 per dollar compared to the last closing of 76.84 against the dollar.
Oil prices continued to show weakness even though they moved away from the lowest level. Brent crude, that fell 24% in the previous session, was trading 62 cents, or 3.2% lower at $18.71 after touching $15.98 a barrel, its lowest since June 1999.
Commenting on Nifty's near-term technical trend, Amit Shah, Technical Research Analyst with Indiabulls Securities said, "Nifty bounced from the zone of near term support of 8,850 and closed on a strong note. However, as mentioned earlier, we continue to remain contrarian bearish and believe there is likely to be limited upside beyond 9,500 levels."