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NEW DELHI: Domestic equity benchmarks soared for the second consecutive session on Wednesday, as the major unknown of state elections got over, the government appointed a new governor for RBI and there were signs of thaw in US-China trade relations.
Investors appeared to have cheered the appointment of former economic affairs secretary Shaktikanta Das as RBI governor and hoped that the new governor would address some of the pain points such as relaxing the Prompt Corrective Action framework and other stiff rules that had stifled the financial system.
India Inc gave a thumbs up to the appointment of a seasoned bureaucrat as new RBI governor, and several industry leaders said his experience in handling economic affairs will play a critical role in dealing with various issues at the central bank.
These and other factors pushed the Sensex 629 points, or 1.79 per cent, higher to 35,779, while Nifty jumped 188 points, or 1.79 per cent, to close at 10,737.
Here is a look at the key highlights of Wednesday's session:
Sensex a sea of greenAll stocks in the Sensex pack settled with gains.
Hero MotoCorp, with a robust gain of 7.01 per cent, led the pack, followed by Bharti Airtel, YES Bank, Adani Ports and Tata Steel, which surged between 3.75 per cent and 6.69 per cent.
Investors richer by Rs 2.79 lakh crThe stocks rally added Rs 2.79 lakh crore to equity investor wealth, as the overall market capitalisation of the BSE-listed firms rose to Rs 1,42,17,920 crore from Rs 1,39,38,566 crore on Tuesday.
Over 200 stocks ready to rallyMomentum indicator moving average convergence divergence, or MACD, showed 203 stocks have seen bullish crossovers on BSE.
Among them were HDIL, Manappuram Finance, LT Finance Holdings, Bank of Baroda, Vedanta, Exide Industries, Apollo Tyres, NMDC and ILFS Investment Managers.
Meanwhile, 37 stocks, including 8K Miles Software, Dr.
Reddy's Labs, Bharat Financial Inclusion and Ashnoor Textile, showed bearish crossovers on BSE.
Top gainers losersManpasand Beverages (up 15.12 per cent), HDIL (up 13.67 per cent), Infibeam Avenues (up 12.27 per cent), Indiabulls Real Estate (up 9.99 per cent) and Aditya Birla Fashion and Retail (up 9.01 per cent) emerged as top gainers on BSE.
On the flip side, Dr Reddy's Laboratories (down 4.69 per cent), Vakrangee (down 3.24 per cent), PFC (down 3.02 per cent), Rallis India (down 2.79 per cent) and Godrej Industries (down 1.86 per cent) defied market sentiment to end up being top losers.
Midcaps smallcaps bloomOutperforming the benchmark Sensex, the BSE Midcap and Smallcap indices rose 2.53 per cent and 2.46 per cent, respectively.
Federal Bank, Mahindra Mahindra Financial Services and Divi's Laboratories emerged as top contributors to the rally in the midcap index, while Indiabulls Ventures, Gujarat Pipavav Port and Escorts were the top contributors to the rally in smallcap index.
Realty top sectoral gainerAll sectoral indices closed in the green on BSE, with the realty leading the pack with a 4.07 per cent gain.
All stocks in the index closed in the green.
HDIL (up 13.67 per cent), Indiabulls Real Estate (up 9.99 per cent) and Godrej Properties (up 5.27 per cent) led the pack.
Spurt in OIHero MotoCorp, at 61.93 per cent, led the pack of stocks that witnessed the biggest spurt in open interest on NSE.
It was followed by TVS Motor (46.84 per cent), Cholamandalam Investment and Finance (25.93 per cent), Dr.Reddy's Laboratories (24.88 per cent) and Godrej Industries (21.99 per cent).
Adani Ports, ACC above 200 DMAsACC, Bajaj Auto, Bajaj Finserv, PTC India, Adani Enterprises, Adani Ports, Corporation Bank and V-Guard Industries were among the stocks that traded above their 200-DMAs.
On the flip side, Power Finance Corporation, NK Industries and Sasta Sundar Ventures were among the stocks that failed to perform and slipped below their 200-DMAs.
Overbought and oversold stocksAs many as 58 stocks, including Rolta India, ILFS Transportation, Arvind, Punj Lloyd, Regency Investments and Maxheights Infra entered the oversold zone on BSE, as per the momentum oscillator Relative Strength Index, or RSI.
On the other hand, Maestros Electronics, Virgo Global, Franklin Industries, Superior Finlease and Apoorva Leasing Finance were among the 26 stocks that settled in the overbought zone.
185 stocks hit upper circuitSagar Diamonds, Indiabulls Real Estate, Shankara Building Products, ILFS Transportation Networks and Kwality were among the 185 stocks that hit upper circuits on BSE.
However, despite positive market sentiment, as many as 143 stocks, including Gayatri Highways, Space Incubatrics Technologies, Orient Press, Rolta India, California Software and California Software hit their lower circuit limits.
Nifty crossed 20 DMAThe Nifty index crossed its short-term 20 DMA, but closed below its 200-DMA at 10,737.
The index again formed a strong bullish candle, indicating a strong rise.
However, other lead indicators remained neutral during the day.
"The index tested its long-term average of 10,750 with ease.
However, the near-term indicators are yet to trigger buy, therefore, one has to tread with caution and strictly follow through their respective trading plans.
The index could face headwinds around 10,850 and 10,950, while the support is around at 10,555 to 10,660," said Arun Kumar, market strategist, Reliance Securities.
