The Sensex and the Nifty50 scaled fresh four-month closing highs led by gains in financial and IT shares. The Bajaj twins, Reliance and Bharti Airtel were the biggest contributors to the rise in both headline indices.
Indian equity benchmarks scaled fresh four-month closing highs on Wednesday, with the Sensex crossing the 60,000 mark for the first time in since April 5. Strength in oil & gas, auto and FMCG shares powered the upmove in the market though weakness in select IT names played spoilsport.
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Both Sensex and Nifty50 rose as much as 0.8 percent during the session. The 30-scrip index gained 481 points to end at 60,323.3 and the Nifty settled at 17,966, up 140.7 points from its previous close.
A total of 33 stocks in the Nifty50 basket rose for the day. Bajaj Finserv, Bajaj Finance, HDFC Life, Hero MotoCorp and Bharti Airtel were the top gainers.
Tech Mahindra, Bharat Petroleum, Hindalco, HCL Tech and Tata Consumer — rising up to 2.5 percent — were also among the top blue-chip gainers.
On the other hand, Apollo Hospitals, Tata Motors, Mahindra & Mahindra, Maruti Suzuki, Cipla, UltraTech and Coal India — declining around percent each— were the top laggards.
Bajaj Finance, Bajaj Finserv, Reliance and Bharti Airtel contributed 186 points to the gain in Sensex.
Bharti Airtel shares were in demand after the telecom operator paid Rs 8,312.4 crore to the government's telecom department towards dues for spectrum acquired in the recently concluded 5G auctions. Bharti Airtel has paid four years of 2022 spectrum dues upfront.
Barring the auto sector, all spaces held on to the green.
"Consistent participation by FIIs is the backbone of the current rally in the domestic market. This reversal in the FII trend is owed to the resilience showcased by the Indian economy even as inflation continues to plague the western markets," said Vinod Nair, Head of Research at Geojit Financial Services.
"Declining commodity and oil prices instilled confidence in foreign investors," Nair added.
Overall market breadth favoured the bulls, as 2,017 stocks rose and 1,405 fell on BSE.
European equities began the day with minor cuts following a mixed session across Asia amid recession fears. The pan-European Stoxx 600 index was down 0.3 percent at the last count.
S&P 500 futures were down 0.7 percent, suggesting a lower opening ahead on Wall Street. Investors globally awaited macroeconomic data due this week for more clarity on strength of the global economy.