Indices surge as govt. okays stimulus steps

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Indian equity benchmarks gained over 2% each on Wednesday as buying interest in financial sector stocks lifted the indices.

Investor sentiment received a boost after the Cabinet approved a liquidity scheme for non-banking financial and housing finance companies and also said the government would support the industry in the current stressful times.

The 30-share Sensex gained 622.44 points or 2.06% to close at 30,818.61. The HDFC twins – HDFC and HDFC Bank – along with Reliance Industries, ICICI Bank, Axis Bank and Kotak Mahindra Bank contributed the maximum to the day’s gains.

In all, 26 of the Sensex constituents gained ground on Wednesday as the overall market breadth also stayed positive with over 1,200 gainers as against 1,060 declines.

The broader Nifty ended the day at 9,066.55, up 187.45 points, or 2.11%.

“Indian equity markets gained for the second straight day, after a last hour surge took benchmark indices to their highest point of the day.Value buying emerged in financial stocks after the Cabinet approved the special liquidity scheme for NBFCs and housing finance companies,” said Siddhartha Khemka, head, retail research, Motilal Oswal Financial Services.

A positive trend in the Asian markets also acted as a catalyst as the benchmarks of Hong Kong, South Korea, Japan, Taiwan, Malaysia and Philippines also ended in the green on Wednesday.

Global sentiments were positive after reports that US pharmaceutical company Moderna’s vaccine against coronavirus showed encouraging results.

Back in india, foreign portfolio investors continued to sell Indian shares with Wednesday’s net sales pegged at ₹1,467 crore. Domestic institutional investors, however, provided strong support with net buying of ₹2,373 crore.

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