Domestic benchmark indices on Wednesday rallied nearly 7% to log their biggest single-day gain since 2009 as markets shirked concerns over the 21-day countrywide lockdown, buoyed by hopes of receiving an economic stimulus package amid the coronavirus pandemic.
The BSE Sensex surged 1,862 points to close at 28,536, while the National Stock Exchange Nifty 50 jumped by 517 points to close at 8,318.
Reliance Industries was the top gainer in the Sensex pack as it soared 15%. The other top stocks on the Sensex were Kotak Mahindra Bank, Maruti Suzuki, HDFC Bank and HDFC. IndusInd Bank, ONGC and ITC were the only stocks that declined.
This was the second consecutive day when Indian markets registered gains after witnessing a bloodbath on Monday. The equity markets on Tuesday rose as much as 5% intra-day, but pared gains to finish between 2% and 3% higher. The optimism prevailed after Finance Minister Nirmala Sitharaman on Tuesday said the Centre was “very close” to finalising an economic package for the country’s economy.
Indian benchmark indices on Wednesday also joined the bandwagon of positive market sentiment across the world after United States President Donald Trump closed in on an agreement for a massive economic stimulus bill to cushion the economy from the severe economic whiplash of the coronavirus.
The United States Senate and White House reached an agreement on a $2-trillion stimulus package for the country’s economy.
All other major Asian markets finished in the green on Wednesday. Bourses in Shanghai, Hong Kong, Tokyo and Seoul rallied up to 8%. Meanwhile, benchmarks in Europe were also trading up to 4% higher.
The domestic currency market was closed on the occasion of Gudi Padwa.
Indian benchmark indices had fallen sharply on Monday as the rising number of coronavirus cases forced several states into lockdown, and investors continued to sell. Sensex ended 3,934.72 points or 13.15% lower at 25,981.25 that day – the worst crash ever. Trading was stopped for 45 minutes as the index hit the lower circuit level due to sell-off. This was the second time in two weeks that trade was halted temporarily.