In spite of favourable factors, there will be dips in the market triggered by profit booking at higher levels, says V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The National Stick Exchange benchmark Nifty50 soared on Wednesday after trading resumed following a temporary shutdown of its cash and derivatives segment caused due to a technical glitch. The Nifty50 closed nearly 284 points higher and Sensex rose over 1,000 points, tracking strong buying in financial stocks.
Trading at the Nifty50 was halted at 11:40 a.m. and resumed only at 3:30 p.m. after a glitch resulted in stopping of rate updates. As a result, the BSE trading session was extended as the trading in NSE resumed at 3.45 p.m. till 5 p.m.
After resumption of trade at 3.45 pm, NSE Nifty zoomed 274.20 points or 1.86 per cent to end at 14,982.
The S&P BSE Sensex zoomed 1,030.28 points or 2.07 per cent to hit 50,781.69 levels.
The gainers on the Sensex pack were led by Axis Bank, surging around 5 per cent, followed by HDFC twins, ICICI Bank, Bajaj Finance and SBI.
On the other hand, PowerGrid, Dr Reddy’s, TCS and Asian Paints were among the laggards.
“A late surge by bulls across financials post lifting of the embargo on the grant of GOI business to private banks took indices up 2 per cent when trade time was extended till 5.00 pm,” said S Ranganathan, Head of Research at LKP Securities.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo ended on a negative note.
Stock exchanges in Europe, however, were trading with gains in mid-session deals.
Meanwhile, the global oil benchmark Brent crude was trading 0.96 per cent higher at USD 65.10 per barrel.
In the forex market, the rupee gained 11 paise to settle at 72.35 against the US dollar supported by positive domestic equities and weakness of the American currency in the overseas market.