Indian stock markets ended higher amid high volatility on Wednesday. The BSE Sensex ended at 30,818.61, up 622.44 points or 2.06% while the 50-share index Nifty was at 9,066.55, up 187.45 points or 2.11%. Analysts said that markets sentiment was driven by few stocks that reported better-than-expected results while expectations out of union cabinet meeting also boosted sentiments.
“Indian equity markets gained for the second straight day, after a last hour surge took benchmark indices to their highest point of the day. Value buying emerged in the financial stocks after the Cabinet approved special liquidity scheme for NBFCs/HFCs," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said.
Further the positive statements from the Finance Minister that the government would assess the need for further economic measures as the situation evolves, boosted the market sentiments as it implies there could be more stimulus ahead, he said.
Globally, the markets traded on a mixed note on scepticism about validity of the results of Moderna’s vaccine trial for covid-19. Further the investors are cautious over the fears of second wave of coronavirus and ongoing US-China trade tiff, while reopening of many economies kept the sentiments positive too.
In the near term, the volatility is likely to continue in Indian markets amidst mixed cues from domestic and global market. Investors will closely monitor the development of coronavirus cases and vaccines, quarterly results, US-China relationship, crude oil prices movements and economic policies.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities said, “The reopening of economies in some of the parts of world helped the markets move higher. As the market has managed to close above the level of 9050, on an immediate basis, Nifty may rise to the levels of 9160/9200."
The Indian Rupee closed 0.21% lower at 75.80 per dollar.