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Sensex jumps over 700 pts and Nifty50 surpasses 16,550 on Reliance, TCS and Infosys boost

Sensex jumps over 700 pts and Nifty50 surpasses 16,550 on Reliance, TCS and Infosys boost

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By Sandeep Singh  Jul 20, 2022 9:39:56 AM IST (Published)

The Sensex and the Nifty50 made a gap-up start on Wednesday led by buying across sectors. Globally, earnings optimism drove sharp gains in equities as earnings optimism took investors' minds off steep hikes in pandemic-era interest rates and their impact on economic growth.

Indian equity benchmarks made a gap-up opening on Wednesday backed by gains across sectors, with oil & gas, IT, financial and auto shares being the biggest contributors. Globally, investor focus shifted to earnings optimism

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from fears of the prospect of steep hikes in COVID-era interest rates damaging economic growth.
Both headline indices rose as much as 1.4 percent in the first few minutes of trade. The Sensex gained 755.9 points to touch 55,523.5 at the strongest level of the day so far and the Nifty50 climbed to as high as 16,565.5, up 224.9 points from its previous close.
All of the Nifty50 constituents began the day in the green, with ONGC, Reliance, IndusInd, Hindalco and JSW Steel being the top gainers.
Tata Steel, Apollo Hospitals, Titan, HCL Tech, Grasim, Bajaj Finserv and Bajaj Finance — rising around 1-2 percent at the open — were also among the blue-chip stocks that rose the most.
Reliance, Infosys, the HDFC twins and TCS were the biggest contributors to the gain in both main indices in early deals.
Reliance industries, Oil India, ONGC and Vedanta jumped after the government cut a windfall tax on oil producers and refiners — a tax on gains arising out of a sharp surge in oil rates, and exempted gasoline from an export levy. The move comes less than three weeks of the imposition of the two charges.
Wall Street has rebounded sharply driven by impressive corporate earnings, FPI selling appears to have bottomed out and there is major relief for the petroluem sector, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"Investors have to exercise some caution because selling may reemerge at higher levels. Results from leading corporates are likely to be good and the ongoing rally may continue," he said. 
Wipro (up 1.1 percent at the open), IndusInd (up 0.7 percent), Havells (down 0.2 percent) and Syngene (up 0.6 percent) were due to report their financial results for the April-June period later in the day.
Overall market breadth favoured the bulls in the morning, as 2,209 stocks rose and 685 fell on BSE.
Global markets
Shares in other Asian markets saw sharp gains, mirroring a strong session on Wall Street overnight. MSCI's broadest index of Asia Pacific shares outside Japan was up 1.3 percent in early hours. Japan's Nikkei 225 was up 2.3 percent. 
S&P 500 futures were up half a percent, a day after the S&P 500 finished 2.8 percent higher. The Dow Jones and Nasdaq Composite indices rose 2.4 percent and 3.1 percent respectively.
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