Following their worst single-day decline in four years, the benchmark stock indices Sensex and Nifty surged over 3 percent each on Wednesday. This recovery was driven by significant value buying from investors, spurred by the initiation of talks on government formation among NDA alliance partners. 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 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.
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.
(With inputs from PTI)
ALSO READ: India's economy grows 7.8 per cent in March quarter, annual growth rate hits 8.2 per cent
