Benchmark indices hit their highest level in more than 14 weeks on the back of a slew of good news — forecast of an above-normal South-West monsoon, dipping consumer price inflation and a rising Index of Industrial Production.
The S&P BSE Sensex and CNX Nifty jumped 481 points and 141.5 points to close at 25,626.75 and 7,850.45, respectively. Broader indices Nifty 500, Nifty Midcap 100 and Nifty Smallcap 100 underperformed benchmark indices.
Asian and European stocks surged 1-3 per cent on stronger-than-expected growth in China’s exports.
Gains in US stocks on Tuesday, led by energy companies after news reports said Saudi Arabia and Russia were working towards an agreement to cut oil production, also aided bullish sentiments.
Back home, almost all sectoral indices except media ended in the green. Auto and financials were the major gainers as expectations of an interest rate cut gained strength post inflation data. Nifty Auto index, the biggest sectoral gainer on the NSE, hit a four-month high and ended up 3.5 per cent.
Mahindra and Mahindra, market leader of domestic tractor market, was the biggest gainer on Nifty 50 and also among A group stocks. The stock rose 7.4 per cent to ₹1,331 on expectations of a good monsoon.
With the stock market closed on 14th and 15th on account of Baba Saheb Ambedkar Jayanti and Ram Navami, respectively, this week has ended with the benchmark indices gaining 4 per cent.
After declining more than 10 per cent in January-February, the market has recovered significantly since March and is up 9 per cent already as on Wednesday.
Infosys will kick-starts the earnings season by declaring its results on Friday. Brokerage reports also indicated that the March quarter will be the best in the past five quarters.