Bulls roared on Dalal Street Wednesday as equity benchmarks surged nearly 2 percent driven by banks after Vijay Mallya submitted repayment plan to Supreme Court. The rally was also supported by positive global cues after Fed Chair Janet Yellen comments.
The 30-share BSE Sensex spiked 438.12 points or 1.76 percent to 25338.58. The 50-share NSE Nifty climbed 138.20 points or 1.82 percent to 7735.20 ahead of expiry of March derivative contracts (on Thursday).
The broader markets also participated in rally with the BSE Midcap and Smallcap indices rising over 1.8 percent each as about 1873 shares advanced against 750 declining shares on Bombay Stock Exchange.
Experts expect the rally to continue on support from FIIs money after Yellen’s speech.
The markets see Janet Yellen’s speech yesterday as being dovish, says Ian Hui of JP Morgan Asset Management. Fed statements suggest they have a cautious approach towards rate cuts and so it is unlikey to see a hike in April. But a hike in June is possible, he feels.
Going forward, too, Hui expects the rally to continue, more so because commodities have stabilised and fears of a China slowdown have diminished.
Globally, European markets were higher with CAC, DAX and FTSE rising nearly 2 percent after dovish cue from Yellen. Majority of Asian markets also ended higher with Shanghai and Hang Seng climbing over 2 percent.
More to come…