Rallying of Financial Stocks Make Sensex Close Higher

The Indian benchmark indices closed Wednesday in the green as the Finance Minister stated that the government would stand by the companies and businesses at times of financial crisis. The markets witnessed great buying of stocks of the financial sector and caused the S&P BSE Sensex to close in positive territory. 

The S&P BSE Sensex soared more than 2% or 622 points to close the day at 30,819.61 points. HDFC emerged as the highest gainer, and it zoomed nearly 5.5%. Other than that, the shares of Tata Steel, L&T, and Mahindra & Mahindra shot up 4.34%, 5.27%, and 5.71% shot up respectively. 

The NSE Nifty closed Wednesday above its crucial level of 9,000 points. It rallied 187 points or 2.11% to settle at 9,066.55 levels. All the sectoral indices on the National Stock Exchange (NSE) ended in the green. The NSE Nifty Private Bank and Nifty Bank soared nearly 2% each. The Nifty Pharms zoomed more than 4% to close at 9,456.8 points.

Also Read: Indian Benchmark Indices Open the Week on a Poor Note

The S&P BSE SmallCap index climbed more than 1% to the Wednesday at 10,472 points, and the S&P BSE MidCap index shot up about 1.5% to settle at 11,278 points at the end of trading hours today. India VIX, the volatility index, declined by a whopping 10% to close at 35.5 levels. 

The Asian markets failed to continue rallying on Wednesday amidst bonds and gold prices staying firm. MSCI’s broadest index of Asia Pacific shares outside Japan closed the day nearly flat, so were the stocks being traded in China and Hong Kong as the investors are awaiting the government’s economic plans. It would be made public on Friday. 

Among commodities, the oil prices saw some respite as there was a slight increase in demand. However, economic concerns raised by the latest pandemic erased the gains to a considerable extent. 

For any clarifications/feedback on the topic, please contact the writer at vineeth.nc@cleartax.in