Domestic stock markets recovered early losses to push higher on Wednesday, led by gains in banking, financial services and automobile shares, as Asian equities scaled a two-week peak. The S&P BSE Sensex index climbed to as high as 39,858.35 in late morning deals, having recovered more than 400 points from the weakest level of the day at 39,450.82 hit earlier. The broader NSE Nifty 50 benchmark climbed to as high as 11,733.80, having declined to 11,629.35 earlier compared to its previous close of 11,662.40. Losses in IT and metal shares, however, limited the upside. (Track Sensex, Nifty)
At 12:06 am, the Sensex traded at 39,880.22, up 305.65 points - or 0.77 per cent - from its previous close, while the Nifty was up 71.65 points - or 0.61 per cent - at 11,734.05.
Titan, Reliance Industries, UltraTech Cement, ONGC and Hindustan Unilever, trading between 1.40 per cent and 5.06 per cent higher, were the top gainers in the 50-scrip benchmark index.
On the other hand, Bajaj Fnance, Tata Motors, Hindalco, Bajaj Finserv and Sun Pharma, trading between 1.72 per cent and 4.33 per cent lower, were the worst hit among 31 Nifty laggards.
Reliance Industries, HDFC Bank and HDFC were the biggest boosts to Sensex.
Analysts awaited corporate earnings from heavyweights and the outcome of a policy review by the RBI due in the coming days.
The Reserve Bank of India's Monetary Policy Committee will to begin a three-day review later in the day. The central bank is widely expected to hold key interest rates at existing levels in the upcoming policy statement, due on Friday, in a bid to tackle high inflation.
Tata Consultancy Services (TCS) - the country's largest IT company - will kick of the earnings season by reporting its financial results for the July-September period. The IT major is also expected to lay out a highly-anticipated share buyback. TCS shares rose as much as 1.65 per cent to Rs 2,761 apiece on the BSE.
Asian stock markets hit a two-week high, brushing off a Wall Street tumble and a drop in commodity prices after US President Donald Trump abruptly cancelled talks with lawmakers on coronavirus-relief spending plans.
Mr Trump broke off talks with Democrats in a Tweet, saying that negotiations will stop until after the election, when he promised a major stimulus bill. That sent US stocks on their steepest drop in two weeks, pushed oil sharply lower and lifted safe assets like the dollar and bonds.
A key component was a new $25-billion bailout for US passenger airlines to keep tens of thousands of workers on the job for another six months. A prior $25-billion airline payroll support program expired on September 30.