Nifty50 and Sensex closed over 3% higher. Indices were led by Reliance Industries and banking stocks. This comes after two key allies – Telugu Desam and Janata Dal-United pledged their support to form a new government following a narrow win for the BJP-led NDA alliance.
Sensex rose 2,303 points while Nifty gained 736 points.
2. Sectors
Heavyweight bank stocks surged 4.5%, financial services index jumped 4.2%, driving a surge in the Nifty. Bank stocks had dropped nearly 8% on Tue. Nifty FMCG surged 4.3%, while Nifty Auto gained 4.7% on expectations of rural demand. IT index was up 2.4%.
3. Global Markets
World shares rose on Wednesday, and the dollar steadied as investors focused on the upcoming European Central Bank meeting. Soft U.S. labor market data increased expectations of a September rate cut by the Fed.
The MSCI world equity index added 0.05%, supported by a positive open in Europe and gains in Asia.
4. Crude Oil Prices
Oil prices were near four-month lows due to an expected supply boost from OPEC+ unwinding output cuts. Markets are also digesting U.S. jobs data and higher oil stocks. Brent and US WTI closed at $77.71 and $73.39 a barrel respectively
5. Rupee
The Indian rupee closed stronger due to dollar sales from foreign banks and likely intervention from the RBI. The rupee closed at 83.37 against the U.S. dollar.
