Equity benchmark Sensex rebounded 620 points on Wednesday, boosted by gains in index majors Reliance Industries, Maruti and SBI amid a positive trend in global markets.
The 30-share index ended 619.92 points or 1.09 per cent higher at 57,684.79. Similarly, the NSE Nifty surged 183.70 points or 1.08 per cent to close at 17,166.90.
IndusInd Bank was the top gainer in the Sensex pack, rising nearly 6 per cent, followed by Axis Bank, SBI, Maruti, Tech Mahindra and Reliance Industries.
On the other hand, Dr Reddy’s, UltraTech Cement, Sun Pharma, Bharti Airtel and Titan were among the laggards.
Elsewhere in Asia, bourses in Hong Kong, Shanghai, Seoul and Tokyo ended with gains.
Stock exchanges in Europe too were trading on a positive note in mid-session deals.
Meanwhile, India's manufacturing sector activities gained further strength in November, and witnessed the strongest increase in production and sales since February on improving market conditions, a monthly survey said on Wednesday.
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI), increased from 55.9 in October to 57.6 in November, signalling the strongest improvement in the health of the sector in ten months.
According to SBI research report Ecowrap, the country's gross domestic product (GDP) is likely to grow more than 9.5 per cent in fiscal 2021-22.
International oil benchmark Brent crude advanced 3.96 per cent to $71.97 per barrel.
Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 5,445.25 crore on Tuesday, as per exchange data.
According to a report published in The Indian Express, here is what analyst says:
Vinod Nair, Head of Research at Geojit Financial Services
After the sharp sell-off in the global markets yesterday, Indian equities reversed its course following recovery in global markets and strong domestic GDP data. India’s Q2 GDP recorded a growth of 8.4 per cent as economic activity moved towards normalcy after the impact of the second wave.
Though the Fed chair’s comment on speeding up the pace of the bond-buying taper plan kept investors cautious along with the concerns of Omicron, the global markets recovered sharply today.