Mumbai: Key benchmark index BSE Sensex today surged over 400 points while the broader index NSE Nifty reclaimed 7,700 mark in trade mainly on account of firm global cues and buying in frontline bluechip counters.
The BSE Sensex closed 438.12 points up at 25,338.58, while NSE Nifty settled 138.20 points up at 7,735.20.
The reason behind this positive spurt is a bullish sentiment that was underlined through various factors. On the global front, the Asian markets had traded mostly in green, while the European markets were trading on optimistic note.
This was after US Federal Reserve’s chief, Janet Yellen, stated that conditions relating to poor economic readings and weaker foreign growth are a cause for concern and that the current environment might not be conducive for aggressive interest rate hikes in the US.
On the domestic front, there are high hopes from the Reserve Bank of Indias’s monetary policy review due on April 5. Investors, hoping for a 25 basis points cut in interest rates, were seen piling up positions in realty, metal and banking sector stocks.
Statements by Finance minister Arun Jaitley that he would reach out to the opposition again to past the GST test in parliament firmed up the positive sentiments.
Furthermore, in a bid to guard the domestic industry against cheaper imports from China, the government today announced an extension of safeguard duty of up to 20 per cent on certain steel products till March 2018. This measure led to some hectic buying in steel stocks, which helped push the index further.
Finally, the Indian rupee appreciated by 16 paise to 66.38 against the US dollar in early trade on Wednesday on increased selling of the American currency by exporters and banks amidst continued foreign fund inflows.