Markets back to pre-cash ban level, Sensex gains 333 points

The market on Wednesday returned to its pre-demonetisation level, as the benchmark BSE Sensex gained 333 points, or 1.21 per cent, to close at nearly three-month high of 27,708, on the back of strong earnings amid positive global feelers.

Covering of pending short positions, following the expiry of the January futures and options contracts on Wednesday, and positive earnings by some companies aided sentiment. Stock exchanges will remain closed on Thursday for the Republic Day.

The Sensex last closed above 27,700 on November 1, when it hit an intra-day high of 27,736.83. The gauge had rallied 341.08 points in the previous two sessions.

The National Stock Exchange's Nifty went past the 8,600-mark for the first time since November 1. The Nifty ended at 8,602.75, up 126.95 points, or 1.50 per cent, after moving between 8,612.60 and 8,493.95. "Market had come to the pre-demonetisation level supported by the ongoing quarterly results, which largely survived the expected slowdown. Positive global cues also added excitement in the market rally," said Vinod Nair, head of research, Geojit BNP Paribas Financial Services.

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Banking, metal, automobiles and consumer durables stocks were in fine nick, lifting the key indices.

Mood was aided by optimism ahead of the Union Budget on February 1, amid a firming trend in Asia and Europe following overnight record close in the US on hopes of fresh spending by new US President Donald Trump, traders said.

The banking index advanced the most by surging 2.33 per cent, followed by consumer durables (2.26 per cent), oil and gas (1.75 per cent), PSU (1.64 per cent) and metal (1.39 per cent).

HDFC emerged as the top gainer among the Sensex firms, climbing 4.31 per cent, followed by Adani Ports (up 3.61 per cent). HDFC Bank surged 1.56 per cent after the lender on Wednesday reported 15.04 per cent growth in net profit for the December quarter.

Maruti Suzuki advanced one per cent after 47.46 per cent jump in standalone quarterly net profit. Other biggies that gained were Hero MotoCorp, Axis Bank, Coal India, L&T, ITC, Mahindra & Mahindra and State Bank of India.