Domestic stock markets continued to rise for a second straight day on Wednesday tracking broader gains in Asian equities, as investors weighed the prospect of COVID-19 vaccines against more stimulus measures in major economies. The S&P BSE Sensex index jumped 506.63 points, or 1.10 per cent, to touch 46,513.32 at the strongest level of the day, and the broader NSE Nifty 50 benchmark climbed to as high as 13,619.45, up 153.15 points, or 1.14 per cent, from its previous close. Strong buying interest across sectors, led by financial, IT and automobile shares, pushed the markets higher.
The Sensex ended 437.49 points, or 0.95 per cent, higher at 46,444.18 and the Nifty settled at 13,601.10, up 134.80 points, or 1.00 per cent, from its previous close. (Track Sensex, Nifty Here)
Wipro, Cipla, Tata Steel, Tata Motors, Hindustan Unilever and Infosys, closing between 2.58 per centa nd 5.70 per cent, were the top gainers in the Nifty basket of 50 shares.
On the other hand, Hero MotoCorp, Divi's Laboratories and Titan were the weakest among eight laggards in the index.
Infosys, Hindustan Unilever and TCS were the biggest boosts for Sensex, contributing nearly 200 points to the gain in the 30-scrip index. (Also Read: Stocks To Watch Today)
Analysts say buying at lower levels after Monday's sharp selloff is fuelling the rebound in the markets.
"In a market which saw some kind of correction, IT and pharma stocks are coming back in focus. IT is doing well on the (back of) strong deal wins," said Siddhartha Khemka, head of retail research at Motilal Oswal Securities.
The Nifty IT index, which tracks 12 IT services-focused stocks, finished 2.36 per cent higher for the day, having jumped as much as 2.61 per cent during the session.
The Nifty Pharma index closed 1.61 per cent higher.
The domestic markets witnessed a massive selloff on Monday as India and other countries suspended travel from Britain on fears around the new coronavirus strain.
"In a short week, we have seen some high volatility due to negative global cues and we could still see some wild swings," Mr Khemka added. The markets will remain closed on Friday for Christmas.
World stocks ticked up on Wednesday, as a last-minute intervention by US President Donald Trump dampened positive sentiment over a US stimulus deal, while the pound rose on the possibility of a Brexit agreement.
European stocks also got a lift from the Brexit deal hopes, rising 0.35 per cent at the last count, though Britain's internationally-focused FTSE 100 index was down 0.15 per cent.
Holiday-thinned markets are also jittery about a highly contagious new coronavirus strain, which has given support to the safe-haven US dollar and yen and dragged on the prices of growth-sensitive commodities from oil to iron ore and copper.
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