With RIL and Financials stocks gaining ground, Sensex climbed 499 points or 1.43 per cent to close at 35,414 while Nifty gained 128 points to close at 10,430.
RIL and Financials lifted the BSE benchmark index higher on Wednesday amidst firm global markets and indications of economy picking up which Supported the Investors sentiments even as rising Coronavirus cases and extension of lockdown in some states limited the gains in stocks.
Though the economy had contracted in June and was slowly picking up it indicated that it might be coming out of a major crises and raised hopes of stability among the investors, according to Vinod Nair, Head of Research at Geojit Financial Services.
Experts however feel that though the market trend is positive, rise in Coronavirus cases in India and resultant lockdown in some states might continue to slow down the economy in the coming days.
Of the 30 Sensex stocks, 14 closed higher with HDFC being the top contributor to the gains as it went up 4.49 per cent, RIL was the next with 2.03 gains.
Among the Financials, HDFC Bank, ICICI Bank and Axis Bank rose 1.87 per cent, 3.56 per cent and 6.58 per cent respectively. Axis Bank rose 6.58 per cent as newspapers carried reports that the bank may announce a share sale on Thursday to raise $1.5 billion amounting to Rs 11,333 crore.
BSE Midcap and Smallcap added 0.18 per cent and 0.39 per cent respectively.
Vodafone India came down 4.33 per cent after it reported a net loss of Rs 73,878 crores ending March, which is considered to be highest ever by an Indian firm.
ONGC dropped 1.11 per cent after it posted a net loss of Rs 3098.26 crore for quarter ending March. It had reported a net profit of Rs 4239.50 crore during the Correspondent period last year.
Automobile Major Maruti Suzuki came down 0.69 per cent following a 53.8 per cent decline in domestic passenger vehicle sales to 51,274 units in June due to Covid-19 lockdown restrictions.
Meanwhile, Goods and Service Tax collections for June touched Rs 90,917 crore at gross levels, 9 per cent lower than the same month last year. However, the Collections were higher than the ones recorded in April and May during the lockdown period due to Covid-19 pandemic.
Asian and European Markets recorded small gains on Wednesday mainly due to recovery of manufacturing activities in China and improving euro zone data, However, increasing Coronavirus cases the world over kept the gains in check.
According to experts, investors are likely to watch in the coming days rise in coronavirus cases, political and border developments concerning India and China and direction of Global markets.
