Sensex rockets 461 pts as rupee recovers; auto, banks, financials lead rally
Indian share market after days of rout, rose substantially on Wednesday, as the strong rupee pulled up almost all sectors. Non-banking financial companies (NBFC) stocks, which have been dropping over the past few weeks, saw an upsurge. The news about SBI buying NBFC assets may have helped the market rise. The BSE Sensex ended at 34,760.89 poins, 461.42 points or 1.35 percent up, over the previous day's 34,299.47 points.
Bajaj Finserv, Bajaj Finance, ZEEL, Eicher Motors, and Axis Bank are the Nifty 50 best performers, While Bharti Infratel, Infosys, TCS, HCL Tech, and Wipro stocks fell heavily. IT stocks were down as the rupee strengthen. Axis Bank, SBI, Maruti Suzuki, YES Bank, and ICICI Bank rose over 4 percent on the BSE.
Gains in other Asian markets and stronger domestic equities helped boost trading sentiment. Meanwhile, RBI announced the first open market bond purchase for October.
After continuous meltdown in the past 10-15 days, it is natural to see some bounce and there are rumours about NBFC space being addressed, Reuters quoted as saying Dhananjay Sinha, head-institutional research, Emkay Global Financial Services. However, pressure on market in is likely to continue.
The S&P BSE MidCap index rose to 14283, up 4.2 percent, while the S&P BSE SmallCap rose to 13998, up 3.7 percent.
Shares of Adani Power surged as much as 25 percent even as power companies' stocks rose substantially.
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Power companies' shares rose after reports suggested that an expert panel recommended that fuel cost be passed on to consumers prospectively. The panel also recommended that companies should have the option to extend power purchase contracts by 10 years.
Aviation companies` stocks too witnessed an upsurge after a report suggested that the government may cut excise duty on aviation turbine fuel.
(With inputs from agencies)