The markets closed firm on Wednesday ahead of the settlement of the July series of Nifty futures. The Sensex gained 3.6 per cent, or 495 points, to close at 14,287 levels, led by a strong comeback from banking and realty stocks.
The broader benchmark Nifty also surged 2.9 per cent, or 123 points, to end at 4,313.
Strong global cues also lifted the investor sentiment. Wall Street as well as Asian markets closed firm on a drop in oil prices. Light sweet crude for September 2008 delivery fell $2.54 to $122.19 a barrel on the New York Mercantile Exchange on Tuesday.
Heavy buying was visible on all counters, barring FMCG stocks.
Despite the recent rally in Indian markets, analyst expect more correction. “Though crude prices have eased, it is still at high levels. Companies are facing problems related to cost and their profitability has taken a hit. Global problems are also looming large. So Indian markets will correct further,” said Upendra Kulkarni, director & CEO, Fortress Financial Services.
Housing Development Finance was the biggest gainer among the BSE-30 pack, surging 8 per cent to Rs 2,273. Tata Steel, Tata Power and Reliance Infrastructure were the major prominent gainers in the group.
The banking and realty stocks made a remarkable comeback after losing heavily yesterday. The BSE banking index was up 5.2 per cent. Among the banking stocks, Axis Bank advanced 9.6 per cent to end at Rs 679. Bank of Baroda, Union Bank of India and HDFC Bank were the other major gainers in the sector.
The BSE realty index also gained 5 per cent, with IndiaBulls Real Estate surging 13.5 per cent to close at Rs 299.
The Asian markets also closed firm on Wednesday, with Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s Kospi ending in the green by over 0.7 per cent each.