The sensex rose for a third straight session on Wednesday, boosted by banks and as investors shrugged off global trade war jitters to focus on supportive local factors. The sensex gained 0.4% or 309 points to 77,044, while Nifty rose 0.5% to 23,437. The sensex has risen 5.3% or nearly 4,000 points from its low after April 7 low of 73,138.
The recovery has been fuelled by US President Donald Trump’s exemptions from tariffs, the forecast of an above-average monsoon, and prospects of more interest rate cuts in India.
“The stars are now aligning for a strong rally for India. Earnings estimates are bottoming out and we expect the downgrade cycle to arrest. Valuations have also corrected,” said Jaykrishna Gandhi of Emkay Global Financial Services.
Eleven of the 13 major sectors rose on the day, while the broader midcaps and smallcaps advanced 0.7% and 1.1%, respectively. Heavyweight bank stocks jumped 1.4% on prospects of further rate cuts after retail inflation fell to over five-year low. Reuters