The benchmark indices rose 2 per cent on Wednesday, ahead of a press briefing by Finance Minister Nirmala Sitharaman to outline the Rs 20-trillion relief package.
The Sensex gained 638 points or 2.03 per cent to close at 32,009, while the Nifty rose 187 points or 2.03 per cent to close at 9,384. Both indices closed at their highest since April 30.
Gains were less than what the SGX Nifty had indicated. The Nifty futures contracts traded on the Singapore bourse had soared 5 per cent on Tuesday, after PM Modi’s announcement of the Rs 20-trillion package.
Market players said the gains could have been higher if not for risk-aversion in global indices. Most global markets ended in the red on Wednesday, amid fears of a second wave of infections.
Experts said investors were waiting for further announcements by the government. On Wednesday, the FM unveiled measures aimed mainly at small businesses, and said there would be more announcements.
“The stimulus package Series-1 announced is not only fiscally responsible, but also specifically aims to connect the weaker dots in the economy. This is to quicken India’s revival,” said Jimeet Modi, founder and CEO of Samco Securities.
The 10-year government security, after rising 12 basis points, settled 8 bps lower at 6.08 per cent. Experts said the softening was on optimism that the RBI would step in to support the debt market.
Banking stocks led the gains with Axis Bank rising 7 per cent. Ultratech Cement and L&T rose 6 per cent each. Among the four declining Sensex stocks were Nestle India (down 5.4 per cent), followed by Sun Pharma (2.5 per cent). Overall, 1,656 stocks gained and 730 fell on the BSE.
With inputs from Bloomberg