Markets back to winning ways on stimulus lift

Mumbai: Snapping a two-session losing streak, the BSE Sensex vaulted 637 points on Wednesday as investors cheered the government's Rs 20 lakh crore stimulus package for the coronavirus-hit economy.

After rallying 1,474.36 points during the day, the 30-share benchmark surrendered some gains to settle 637.49 points or 2.03 per cent higher at 32,008.61. Similarly, the NSE Nifty jumped 187 points, or 2.03 per cent, to finish at 9,383.55.

Indices retreated from intra-day highs as participants awaited details of the stimulus package from the finance minister, traders said. Axis Bank was the top gainer in the Sensex pack, spurting 7.02 per cent, followed by UltraTech Cement, L&T, ICICI Bank, SBI, M&M and Bajaj Finance.

Only four index constituents ended in the red - Nestle India, Sun Pharma, HUL and Bharti Airtel, shedding up to 5.38 per cent.

Prime Minister Narendra Modi had on Tuesday announced the new financial package on top of the previously announced measures for a combined stimulus of Rs 20 lakh crore to revive demand and jumpstart growth.

"The much-awaited stimulus package announced by the PM cheered the investors on Wednesday which triggered a decent up move in the benchmark as well. "The index witnessed a huge gap up opening and it remained range-bound thereafter. Most sectoral indices, barring defensive, participated in the move and posted handsome gains," said Ajit Mishra, VP - Research, Religare Broking Ltd.

BSE capital goods, industrials, bankex, realty, finance and basic materials indices rallied up to 5.08 per cent, while healthcare, FMCG and telecom closed lower. Broader midcap and smallcap indices climbed up to 1.97 per cent.

Meanwhile, global markets were mixed as investors took stock of the gradual reopening from coronavirus-related shutdowns. Bourses in Shanghai and Seoul ended with gains, while Hong Kong and Tokyo closed in the red. Stock exchanges in Europe started off with significant losses.

On the currency front, the rupee appreciated by 5 paise to close at 75.46 against the US dollar. International oil benchmark Brent crude futures slipped 1.30 per cent to $29.59 per barrel.

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