A day after facing massive erosion from their wealth, equity investors became richer by Rs 13.22 lakh crore on Wednesday with markets making a strong comeback.
The 30-share BSE Sensex jumped 2,303.19 points, or 3.20 per cent, to settle at 74,382.24.
During the day, it rallied 2,455.77 points, or 3.40 per cent, to 74,534.82.
In line with optimism returning at the Dalal Street, the market capitalisation of BSE-listed companies jumped Rs 13,22,847.05 crore to Rs 4,08,06,552.32 crore ($4.89 trillion) on Wednesday.
“Indian market exhibited a spirited recovery driven by broad based buying across various sectors, as political stability appears assured.
“However, attention will remain on the formation of the government and the forthcoming RBI policy meeting,” said Vinod Nair, head of research, Geojit Financial Services.
All the 30 Sensex companies ended in the green, with IndusInd Bank jumping nearly 8 per cent.
Tata Steel, Mahindra & Mahindra, Bajaj Finance, Kotak Mahindra Bank, Axis Bank, HDFC Bank, Hindustan Unilever, and JSW Steel also emerged big gainers.
Tuesday’s big laggards NTPC, State Bank of India, Larsen & Toubro and Power Grid also ended in the green.
In the broader market, the BSE midcap gauge jumped 4.41 per cent and smallcap index rallied 2.93 per cent.
All the indices ended in the green, with telecommunication soaring 6.01 per cent, services jumping 5.74 per cent, metal (5.36 per cent), auto (4.50 per cent), commodities (4.48 per cent), and consumer discretionary (4.29 per cent).
As many as 2,597 stocks advanced while 1,221 declined and 100 remained unchanged.
“Over the next few days, there could be a lot of action around NDA staking the claim to form the government, and thereafter a lot of noise could be around key portfolio/ministry allocation which will keep the equity markets volatile,” Rupen Rajguru, Head Equity Investments and Strategy, Julius Baer India, said.
