Extending its gains for the third consecutive session, market benchmark Sensex rallied 353 points on Wednesday as reports of a breakthrough in coronavirus treatment enthused global investors.
Domestic participants also cheered improving business sentiment after a survey said India’s services sector activity surged to a seven-year high in January.
The 30-share BSE Sensex settled 353.28 points, or 0.87%, higher at 41,142.66. It hit an intra-day high of 41,154.66.
Similarly, the broader NSE Nifty rose 109.50 points, or 0.91%, to 12,089.15.
Tata Steel was the top gainer in the Sensex pack, rallying 5.14%, followed by Bharti Airtel, HDFC, TCS, L&T, SBI and Reliance Industries.
On the other hand, Hero MotoCorp was the top laggard, shedding 3.83%. PowerGrid, Maruti, Asian Paints and Nestle India too ended with losses.
According to experts, reports of a significant breakthrough in coronavirus treatment research has boosted global stocks.
Bourses in Shanghai, Hong Kong, Tokyo and Seoul settled up to 1.25% higher.
Stock exchanges in Europe too opened on a strong note.
Back home, the release of stellar business data points for January too buoyed market mood, they said.
India’s services sector activity surged to a seven-year high in January driven by sharp increase in new business orders, leading to job creation and business optimism amid favourable market conditions, a monthly IHS Markit survey said.
Earlier this week, another survey said the country’s manufacturing sector activity climbed to a near eight-year high in January.
Meanwhile, Brent crude oil futures advanced 2.76% to USD 55.45 per barrel.
On the currency front, the Indian rupee appreciated by 2 paise to 71.23 per US dollar (intra-day).