Mumbai: Markets rallied for the fourth consecutive session on Wednesday, with the benchmark Sensex surging 259 points to end at a fresh two-week high of 26,652 driven by upbeat global cues on strengthening oil prices. Consumer durables, banking, finance, capital goods, industrials and power sectors were the major winners.
The Sensex resumed higher at 26,441.02 and hovered in a range of 26,680.55 and 26,395.50 before ending at 26,652.81, showing a gain of 258.80 points or 0.98%. This is its highest closing since 11 November when it had closed at 26,818.82.
The gauge has gained 792.64 points of 3.07% in four days. The 50-share NSE Nifty settled 82.35 points, or 1.01% higher at 8,224.50 after shuttling between 8,234.25 and 8,139.25. Sentiment was upbeat on hopes that the government and RBI will announce more measures to contain the fallout of demonetisation while globally, oil prices spiked ahead of a crucial OPEC meet where producers are set to discuss an output cut, analysts said. “Banking sector was firm early in the day itself, with a slew of banks cutting rates. Uniquely enough, being at the month’s end, salary disbursals are also in focus, which is expected to inject more life into the cash-starved economy,” said Anand James, chief market strategist, Geojit BNP Paribas Financial Services.
The recent rally notwithstanding, both the indices ended the month with losses. During November, the Sensex plunged 1,277.40 points, or 4.57% , while the Nifty tumbled 401.20 points, or 4.65%.
Meanwhile, foreign funds sold shares worth a net Rs715.30 crore on Tuesday, as per provisional data released by the stock exchanges. Overseas, Asian and European stocks rose as investors awaited the conclusion of the highly-anticipated meeting of the Organization of the Petroleum Exporting Countries (OPEC). Key indices in Hong Kong, Japan, Singapore, South Korea and Taiwan rose by 0.01% to 0.86% while China’s index eased by 1.00 %.
Key European indices in France, Germany and UK also moved up by 0.34% to 0.54%. US stocks closed higher on Tuesday, with the Nasdaq touching a record, but the market failed to make much headway.