RBI's gradualism fires up bulls on Dalal St
Rate sensitive stocks ended in the green; Sectoral indices reflect bullish undertone; Investors take a breather on reports indicating less severity of Omicron as it allays fears about impact on economy; Investor wealth surges by `3.96 lakh cr as mcap shoots over `264trn
image for illustrative purpose
Nifty reclaims 17,400-mark
- BSE Sensex zoomed 1,016.03 pts to 58,649.68
- NSE Nifty rallied 293.05 pts to 17,469.75
- Biggest single-day jump since March 30
- Mkts turn bullish on positive global cues
- Market breadth was healthy
- Small and midcaps too participating in the rally
Mumbai: The BSE Sensex skyrocketed 1,016 points, while the Nifty rallied past the 17,400-mark on Wednesday as easing concerns over the Omicron variant and RBI's accommodative policy stance galvanised investor sentiment.
Bulls were enthused by a positive trend in global markets amid reports that the new coronavirus strain is unlikely to be more severe than the Delta variant, removing market concerns regarding its economic impact.
Extending its winning run to the second straight session, the 30-share BSE Sensex zoomed 1,016.03 points or 1.76 per cent to finish at 58,649.68. This was its biggest single-day jump since March 30 this year, when it had surged 1,128.08 points. Similarly, the broader NSE Nifty rallied 293.05 points or 1.71 per cent to 17,469.75.
"Fears over Omicron faded as recent reports suggested that the new virus isn't deadly as earlier anticipated and this helped the market to add-on to recent strong gains. The market turned positive over RBI's continued accommodative stance and MPC kept the rates unchanged. The GDP forecast for FY22 remained high at 9.5 per cent showing confidence over economic recovery and inflation forecast is below the market estimates," said Vinod Nair, head (research) at Geojit Financial Services.
S Ranganathan, head (research) at LKP Securities, adds: "Positive global cues, coupled with the continuation of an accommodative policy stance of the RBI by holding rates fired up the bulls even as the central bank decided to enhance the variable reverse repo rate auctions to rebalance liquidity."
Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 2,584.97 crore on Tuesday, as per provisional data. The bullish undertone was reflected in the sectoral indices and advance-declines as the market breadth was healthy with small and midcaps too participating in the rally, he noted. Most of the rate-sensitive auto, financial and realty stocks ended in the green. All sectoral indices ended on a positive note, with BSE auto, teck, telecom, IT and metal indices climbing as much as 2.24 per cent.
