Sensex Jumps Over 550 Points, Nifty Crosses 10,450: 10 Things To Know

The Sensex rose as much as 431.9 points as compared to Tuesday's close of 34,299.47 points.

Sensex Jumps Over 550 Points, Nifty Crosses 10,450: 10 Things To Know

Forty four out of 50 Nifty stocks advanced in trade.

Domestic stock markets posted strong advances in Wednesday's session led by gains across the board except IT. Continued buying by domestic institutional investors as well as select purchases by retail investors led to strong gains on Wednesday, news agency Press Trust of India cited traders as saying. At 1:58 pm, the S&P BSE Sensex traded at 34,758.81, up 459.34 points or 1.3 per cent, and the Nifty was at 10,449.50, with a gain of 148.45 points or 1.4 per cent. At the time of writing this report, the intra-day high of the Sensex was 34,731.37 and that of the Nifty was 10,445.20.
Here are 10 things to know about the markets on Wednesday
  1. The Sensex rose as much as 558.88 points to hit an intraday high of 34,858.35. The Nifty rose as much as 178.6 points to touch 10,479.65.
  2. On Tuesday, the Nifty had closed at 10,301.05 - its lowest since April 4. Wednesday's intraday high - the highest point reached during the session - of 10,479.65 marks a 1.7 per cent recovery from the six-month low registered on Tuesday.
  3. On the NSE, barring IT stocks, all sectoral indices traded with gains. The sectoral indices of banking, financial services, auto, metal and energy stocks on the bourse were trading between 1.3 and 3.4 per cent higher in afternoon deals.
  4. The RBI's decision to inject Rs 12,000 crore of liquidity into the system through purchase of government bonds on October 11 to meet festive season demand for funds also boosted the sentiment, the traders added, according to Press Trust of India.
  5. Forty four out of 50 Nifty stocks advanced. The top gainers in the 50-scrip pack were were Bajaj Finance, Bajaj Finserv, Eicher Motors and Axis Bank - trading between 5 per cent and 11 per cent. 
  6. A stronger rupee, however, dragged IT stocks. The Nifty IT index was down 1.5 per cent.
  7. The rupee, which has been hitting multiple lows this year, recovered by 18 paise to 74.26/27 per dollar against the record low of 74.41 hit on Tuesday. Weakness in the rupee boosts profitability of exporters such as IT companies.
  8. Wednesday's gains across most sectors came a day after State Bank of India (SBI) said it would buy the assets of non-banking finance companies (NBFCs) to the tune of Rs. 45,000 crore. The move would provide liquidity support to the NBFCs which have been facing headwinds after a series of loan defaults by Infrastructure Leasing & Financial Services (IL&FS) group firms.
  9. Experts said that the markets took this positively. "Markets have reacted positively to the news of SBI trying to buy out portfolios of some NBFCs providing them with the much needed liquidity. This was also helped by lower crude and anticipation of easier norms by SEBI on FPI investment," said Viral Berawala, CIO, Essel Mutual Fund.
  10. The first line of defence for Nifty is placed near the 10,777 mark, said Dyaneshwar Padwal, AVP Technical Analyst, KIFS Trade Capital. "After five weeks of vertical wave formation towards the south, bulls finally found out a support near the 10,200 mark and are now marching towards the first line of defence which is placed near 10,777," he said. (With inputs from agencies)

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