Markets rally as rift between RBI, govt eases; global cues aid sentiment

Market players said the statement issued by the government to defuse the tension with the RBI had helped market sentiment

Stocks rallied on Wednesday after the government moved to ease concerns over the independence of the Reserve Bank of India (RBI). Buzz that the government was mulling fresh steps to ease liquidity concerns triggered gains in the shares of non-banking financial companies (NBFCs) and banks. Also, positive global cues, following sharp overnight gains in the US markets, aided sentiment. 

After fluctuating between gains and losses for the better part of the day, the markets soared by over 1.5 per cent a few hours before