Domestic equity indices Sensex and Nifty ended with gains of over 2 % each on Wednesday, backed by a rebound in the banking and financials pack.
Extending gains for the second consecutive session, Sensex ended 622 points higher at 30,818 and Nifty closed 187 points higher at 9,066.
Tracking gains in index-heavyweights, markets rose today amid volatility in global indices. All sectors closed in green territory with buying sentiment in banking, financials and pharma stocks.
Domestic indices rose sharply by afternoon session as the Union Cabinet launched a special liquidity scheme for non-banking finance companies(NBFC) and housing finance companies(HFC) to address their liquidity stress.
Experts said market participants were optimistic over the steps taken by the Centre and its implementation, on account of the emerging situation of COVID-19 crisis.
At the opening bell, Sensex gained 150 points higher at 30,345 and Nifty rose 10 points to 8,889. Earlier, domestic market indices traded on a volatile note, tracking overseas trends, as investors' sentiments were cautious amid rising numbers of coronavirus cases in the country.
Global markets traded on a mixed note today as investor sentiments were buoyed with many economies re-opening, although kept cautious stance over the fears of the second wave of coronavirus.
Amid rising oil prices, equity gains also capped amid concerns over the lasting impact on economic activity, with investors keeping a close watch on vaccine development.
The volatility was broad based, with US markets closing lower, following news reports raising concerns about the effectiveness of the Moderna's vaccine trial. Asian markets were also mixed, with most of the key indices trading mostly positive after China kept its benchmark lending rate unchanged at 3.85%.
European markets opened mixed today lower as investors kept a close watch on developments on vaccine trial and economic recovery. While FTSE traded marginally higher, CAC and DAX were trading flat with negative bias.
On the currency front, India Rupee ended lower at 75.79 per US dollar as against its earlier closing of 75.63 per US currency.
Meanwhile, companies set to announce their earnings are Dr Reddy's, Bajaj Auto, Ajanta Pharma, JSW Energy, Birlasoft, Mahindra Logistics, Strides Pharma Science, GHCL, JK Lakshmi Cement, Ultratech Cement among others.
Expressing views on today's market trend, Vinod Nair, Head of Research at Geojit Financial Services said, "Benchmark indices closed higher than 2%, in spite of mixed global cues and an unabated increase in the number of infections across India. All the major sectoral indices traded positive with the volatility index also decreasing by around 10%."
"The government cabinet approvals of some of the proposed measures and leaving the door open for further stimulus measures could also have played a part in the positivity, " he added.
Worldwide, there are 4,986,681 confirmed cases and 324,912 deaths from the coronavirus COVID-19 outbreak as of today. In India, the total number of cases has reached 106,750, with 42,309 recoveries and 3,303 deaths.
Commenting on Nifty's near term outllok, Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking said,"Going ahead, we expect the Nifty to continue this upward trajectory towards 9150 - 9220 levels. On the flipside, 9000 - 8932 would now provide a decent support for the market. Traders can use intraday decline to create long positions on weekly expiry day."