Encouraging macro data points, buying in metal, realty and financial counters and positive global cues helped benchmark indices to settle in the green for the third consecutive day on Wednesday.
The domestic services industry began 2020 in a buoyant mood as activity accelerated in January at the fastest pace in seven years on strong domestic demand, a private survey showed on Wednesday.
Before this, Manufacturing PMI, too, hit an eight-year high in January, driven by a sharp rise in new business orders amid a rebound in demand conditions.
The S&P BSE Sensex today rallied 353 points or 0.87 per cent to reclaim the crucial 41,100 level to end at 41,143. Tata Steel (up nearly 5.5 per cent) emerged as the biggest gainer on the index, followed by Bharti Airtel, HDFC, and TCS. On the contrary, Hero MotoCorp, Maruti and Power Grid were among the biggest losers.
In the broader market, the S&P BSE MidCap index climbed over 1 per cent to settle at 14,644 while the S&P BSE SmallCap index closed 99 points or 0.68 per cent higher at 14,644-mark.
On the NSE, the benchmark Nifty50 index ended just shy away from the crucial 12,100 level at 12,089, up 106 points or 0.9 per cent.
Sectorally, except media, all the other indices on the NSE settled higher. The Nifty Media index slipped 0.77 per cent to end at 1,768.50 levels. On the upside, metal stocks jumped the most with the Nifty Metal index ending over 3 per cent higher at 2,675 levels.
Shares of Bharat Petroleum Corporation (BPCL) gained for the third straight day on the BSE after reports said that Russia's largest oil producer Rosneft was keen to bid for the state-owned oil marketing company. The stock ended at Rs 501, up 4.7 per cent.
Shares of Avenue Supermarts, which owns and operates the DMart supermarket chain entered the 20 most valuable company club in terms of market capitalisation (m-cap). Shares ended at Rs 2249, up 4.35 per cent.
On the other hand, Zee Entertainment Enterprises (ZEEL) were under pressure for the second straight day on Wednesday. The stock fell over 7 per cent to Rs 227 on the BSE amid media report that the corporate affairs ministry has ordered an inspection of the financials of the company.
European stocks jumped sharply on reports that a Chinese university found a drug to treat people with the new coronavirus and researchers in the UK saying they made a “significant breakthrough” in finding a vaccine, several London-based traders said. US stock futures also turned positive, rising 0.5 per cent.
Earlier, Asian stocks steadied as Chinese shares moved higher on hopes of additional stimulus to cushion the economic blow from a coronavirus outbreak.
In commodities, oil prices jumped by more than 3 per cent.