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NEW DELHI: A new RBI boss and an optimistic assessment of BJP's 2019 reelection bid gave enough firepower to the bulls as equity benchmarks made a spectacular comeback on Wednesday.
CLSA in a note said Prime Minister Narendra Modi is still a favourite to win the 2019 general election.
The possibility of trade tension between the US and China easing was cheered globally as well as back home too.
Trump had said that talks are on with Beijing by phone and he would not raise tariffs on Chinese imports until he is sure about a deal.
Aggressive short covering in stock specific futures was accompanied by a long build-up in indices, according to analysts.
The BSE Sensex shot up 629 points, or 1.79 per cent, to 35,779 while the NSE Nifty added 188 points, or 1.79 per cent, at 10,737.60.
BSE advance-decline ratio stood at 3:1, meaning a rise in every three stocks was followed by a fall in one.
All Sensex scrips closed in the green, with Hero MotoCorp, up 7.01 per cent, emerging as leader.
Bhari Airtel (up 6.69 per cent), YES Bank (5.30 per cent), Adani Ports (4.90 per cent), Tata Steel (3.75 per cent) and Bajaj Auto (3.70 per cent) were other notable gainers.
On the 50-share index, however, five stocks settled lower, with Dr Reddy's Labs as the worst performer.
Shares of DRL had plunged over 5 per cent after a US appeals court barred the drugmaker from launching a copycat version of its rival Indivior's opioid treatment Suboxone Film.
The scrip closed at 4.38 per cent down on the NSE.
Realty, metals and auto stocks put up a stellar show in today's session.
Nifty Realty rallied 4.36 per cent with Nifty Auto (up 3.61 per cent) and Nifty Metals (up 2.58 per cent) playing catch-up.
Banking, finance and FMCG stocks too performed well and gained nearly 2 per cent each.
All sectors ended higher, with Nifty Pharma logging the weakest gains at 0.67 per cent.
Viral Berawala, CIO, Essel Mutual Fund said, "Following the reversals for the incumbents in the state elections, markets are expecting rural-focused policies over the next few months.
Also, the base metal prices went up accompanied by a strengthening currency helping metal stocks to do well.
In terms of FO, aggressive short covering in stock specific futures was accompanied by long build-up in indices."
Globally, Japan's Nikkei led the way in Asia with a jump of 2 per cent, while Shanghai blue chips trailed with just 0.2 per cent.
London, Frankfurt and Paris then gained 0.4-0.8 per cent to push Europe higher and E-Mini futures for the SP 500 added 0.5 per cent, Reuters reported.
