NEW DELHI:
Markets surged more than 1 per cent on Wednesday after the rupee showed some recovery against the US dollar and the banking stocks improved. Non-banking financial companies (NBFCs) saw some boost with the State Bank of India (SBI) raising target for its buying loan portfolio.
The benchmark BSE
Sensex gained 461 points or 1.35 per cent to end at 34,761, while the broader
NSE Nifty closed 159 points or 1.54 per cent higher at 10,460.
Axis Bank, SBI, ICICI Bank and Yes Bank were among major gainers on the BSE platform with their stocks surging as much as 6.10 per cent.
On NSE, sub-indices Nifty PSU Bank and Nifty Media performed the most, gaining as much as 5.58 per cent.
The Indian rupee strengthened, recovering from a record closing low on Tuesday (74.39), as gains in other Asian peers and stronger domestic equities helped the trading sentiment.
“There has been a considerable meltdown in the past 10-15 days and it’s natural to see some bounce after that... There are rumours about NBFC space being addressed. The news about SBI buying assets may have helped,” Dhananjay Sinha, head-institutional research, Emkay Global Financial Services told news agency Reuters.
However, pressure on markets in general is expected to continue, he added.
The country's largest lender SBI had said on Tuesday that it is stepping up its target to buy “good quality” asset portfolios from NBFCs, bringing cheer to the banking sector which has been beaten after defaults by Infrastructure Leasing & Financial Services (IL&FS).