Indian indices extended their winning run on Wednesday, with benchmark Sensex rallying over 450 points to reclaim 71,800 levels. Bullish trends across global equities propelled the move on renewed optimism over China’s reopening. Buying across the board also lifted the Nifty50 index past the 21,550 mark.
The BSE Sensex jumped 458 points to hit an intra-day peak of 71,795. The NSE Nifty50 index climbed 139 points to touch 21,580 in morning deals.
UltraTech Cement, Tata Steel, Tata Motors, JSW Steel, Bajaj FinServ, and SBI led the Sensex pack with gains of 2-4%. Only NTPC and Asian Paints settled marginally lower.
Midcap and Smallcap indices rose over 0.5% each in the broader market, outpacing the benchmarks.
Sectorally, the upside was broad-based. Nifty IT index led the charge with 0.7% gains as IT stocks continued to attract buying interest from investors. Bank, realty, metal, and auto stocks also witnessed strong momentum.
Adani Green Energy shares rose over 2% after the company announced the sale of solar energy assets to the JV between AGEL and TotalEnergies.
Global stock markets also traded higher as China’s reopening from COVID curbs bolstered hopes of a revival in economic activity. Easing Omicron situations in parts of Europe and America also enthused investors.
Back home in India, earnings season, monthly auto sales data, and preparations for the Union Budget 2023 will dictate market direction going ahead. Technically, the Nifty has the potential to scale 21,700 levels if the up move sustains.
