Benchmarks Sensex and Nifty closed higher on Wednesday, in line with overseas markets, amid heavy buying in metal and auto shares. Extending gains for the third consecutive session, Sensex ended 605 points higher at 32,720 and Nifty rose 172 points to 9,553.
In the last three sessions, Sensex and Nifty have gained 1,391 points and 572 points. Investors have gained Rs 4.48 lakh crore in the last three sessions. On April 24, market capitalisation on BSE stood at Rs 121.73 lakh crore. The market cap rose to Rs 126.21 lakh crore at the end of trade today.
Sensex and Nifty have risen 4.27% and 3.98% in one week, 9.74% and 10.31% in one month. However, both bourses have fallen 20.69% and 21.49% since the beginning of this year.
Falling rates of new coronavirus cases, combined central bank and government actions and partial opening up of economy across the world has uplifted the sentiments globally.
All sectors, barring FMCG, pharma closed higher today, with metal rising financial services and metal stocks rising the most. HDFC Bank, Bajaj Finance, HDFC, HCL Tech, GAIL, Adani Ports were among the top gainers on NSE. On the contrary, Dr Reddy's, HUL, Axis Bank, Titan and Asian Paints were among the top losers today.
Domestic markets gained today on account of gains in US Futures ahead of US Fed interest rate decision, strong opening in Asian indices and recovery in oil prices.
S Ranganathan, Head of Research at LKP Securities said, "HDFC twins helped power the market today supported by stocks from Financials, Metals & IT sector. The Benchmark closed decisively above today and the street would be keenly watching global cues tonight as tomorrow is the last working day for markets here for the week".
Global markets climbed amid rising oil prices as France, Spain and Italy moved to ease anti-virus controls and allow businesses to reopen.
Traders said investors were encouraged by plans to ease anti-virus controls that led to shutdown of factories, retailing, travel and other industries.
European markets opened higher on the back of better earnings and reopening of lockdown news. Amid positive oil prices, Asian markets were cautiously higher on Wednesday ahead of the Federal Reserve's policy decision.
US markets closed slightly negative as investors awaited results from Facebook and Microsoft and FOMC rate decision later in the day. The US Federal Reserve is due to issue a policy statement at close of its two-day meeting on Wednesday.
Ajit Mishra, VP - Research, Religare Broking said," With no major event on the local front, we feel global cues like US Fed meet and European Central bank meeting will dictate the market trend as more measures are expected to combat the virus impact. On the domestic front, scheduled derivatives expiry and earnings announcements would keep the volatility high."
Oil price bounced back from recent lows on Wednesday as US stockpiles rose less than expected on hopes that demand could return with some countries easing restrictions US crude inventories rose by 10 million barrels to 510 million barrels in the week to April 24. Brent crude futures rose 4.6% to $21.39 a barrel.
Vinod Nair, Head of Research at Geojit Financial Services said, "Expectations of lockdown measures easing and company-specific news about restarting operations, gave support to the markets.The volatile crude oil prices were also up because of a lesser than forecasted increase in US oil inventories. Tomorrow we have the results of index heavyweights Reliance and HUL."
Tracking rally from domestic equities and weakness in American currency, rupee closed 52 paise higher at 75.67 today, compared to previous close of 76.19 per US dollar.
Meanwhile, the total number of cases in India has reached 30K, while the number of deaths has risen to 1,000 after 1,594 cases were reported in the last 24 hours.