Investors’ wealth saw a significant increase of Rs 3.29 lakh crore on Wednesday due to a strong rally in the equity markets in New Delhi. The 30-share BSE Sensex surged 742.06 points, settling at 65,675.93, and reaching a high of 65,747.65 during the day. The market capitalisation of BSE-listed firms also rallied Rs 3,29,520.27 crore to reach Rs 3,25,40,108.97 crore.
The global inflation data from the US and UK, which was softer than expected, led to a positive response in the market, signaling optimism for the end of the interest rate cycle and an increase in FII flows into emerging markets. This is particularly good for India given the current robust earnings season and the pick-up in festive demand. The drop in India’s CPI also contributed to improving the market sentiment, according to Vinod Nair, Head of Research at Geojit Financial Services.
Tech Mahindra, Tata Motors, Infosys, Wipro, Tata Steel, Tata Consultancy Services, Reliance Industries, and Axis Bank were among the major gainers on the Sensex, while Bajaj Finance, IndusInd Bank, and Power Grid were the laggards for the day.
In the broader market, the BSE smallcap gauge jumped 1.13% and the midcap index climbed 0.91%. All sectors ended in the green, with realty, IT, teck, auto, oil & gas, and energy indices showing positive gains. In Asia, markets in Seoul, Tokyo, Shanghai, and Hong Kong settled in the positive territory, while European markets were also trading in the green.
The US markets closed with significant gains on Tuesday, while equity markets in India were closed on account of Diwali Balipratipada. The surge in domestic equities was attributed to a moderation in both Indian and US inflation, according to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd. The BSE saw 2,215 firms advancing, 1,538 declining, and 131 remaining unchanged at the end of the day.