Top gainers on the 50-scrip Nifty index included Hero MotoCorp, Yes Bank and Indiabulls Housing Finance
Domestic stock markets registered strong gains on Wednesday, supported by advances in banking, auto and metal stocks. The strength in the equity markets came a day after the government moved quickly to appoint a new central bank governor whose predecessor quit after a months-long tussle over policy. BSE benchmark index Sensex climbed 629 points, or 1.8 per cent, to end at 35,779, while the NSE Nifty settled at 10,737, up 188 points from the previous close. Analysts will closely watch key macroeconomic data due for release later in the day.
Here are 10 things to know:
- Top gainers on the 50-scrip Nifty index included Hero MotoCorp, Yes Bank, Indiabulls Housing Finance and Bharti Airtel, closing between 4.9 per cent and 7.2 per cent higher.
- With an advance-decline ration of 4.5:1, market breadth supported the sharp upmove. On the NSE, 1,418 stocks closed higher while 317 fell.
- All sectors finished the day with gains, with the Nifty Bank, Auto and Metal indices rising 1.8 per cent, 3.6 per cent and 2.5 per cent respectively.
- The Sensex and Nifty took advances in two consecutive sessions to 2.3 per cent and 2.4 per cent respectively.
- The appointment of former finance ministry official Shaktikanta Das on Tuesday as the new RBI governor came just a day after Urjit Patel resigned from the post following clashes with the government.
- Analysts say the quick replacement of the RBI chief by the Centre eased some of investors' concerns.
- “Appointment of new RBI governor and hopes of easing of liquidity crisis sent a positive signal to the markets,” AK Prabhakar, head of research, IDBI Capital Markets, told NDTV.
- The government is due to release consumer inflation data for the month of November at 5:30 pm.
- "We believe that there is unlikely to be a major change in the monetary policy path with the appointment of the new Governor as the structure of the Monetary Policy Committee remains broadly unchanged," news agency Reuters quoted HDFC Bank economists as saying in a note.
- Traders and analysts broadly expect the monetary policy stance of the central bank to gradually shift towards neutral as inflation readings have been subdued in recent months.
(With agency inputs)
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