Sensex rises 996 points to close at 31,605; Nifty reclaims 9,300

(Representative image)

NEW DELHI: Equity indices finished higher on Wednesday with the benchmark BSE sensex rising nearly 1,000 points led by gains in banking and financial stocks, ahead of the expiry of monthly derivatives amid firm overseas cues.
The 30-share BSE index rose 996 points or 3.25 per cent to close at 31,605; while the broader NSE Nifty finished 286 points or 3.17 per cent higher at 9,315.
Axis Bank was the biggest gainer in the sensex pack with its shares rising as much as 14.15 per cent after a report said private equity group Carlyle was in discussions with the lender for a fund infusion. ICICI Bank, Kotak Bank, Bajaj Finance, HDFC Bank, IndusInd Bank and SBI were the other gainers, rising up to 8.89 per cent.
On NSE, sub-indices Nifty Bank, Private Bank and Financial Services surged as much as 7.46 per cent.
Despite concerns over COVID-19, market participants preferred to accumulate stocks ahead of the expiry of May futures and options contracts, propelling benchmark indices, experts said.
Further, positive cues from most global markets and strong foreign fund inflows also enthused domestic investors.
“Financials are seeing buying interest from institutional players. Banks especially are seeing some bottom fishing after being beaten down for the past few days,” Deepak Jasani, head of retail research at HDFC Securities told news agency Reuters.
Jasani, however, added that the medium-term outlook for banks remain weak.
Meanwhile, the rupee depreciated 5 paise to settle at 75.71 (provisional) against the US dollar, as market participants were concerned about rising tensions between the US and China amid coronavirus pandemic.
Forex traders said rupee was trading in a narrow range as positive domestic equities, rising optimism about a potential coronavirus vaccine and a revival of business activities were offset by a flare-up in US-China tensions.
Foreign portfolio investors purchased equities worth Rs 4,716.13 crore in the capital market on Tuesday, provisional exchange data showed.
International oil benchmark Brent crude futures slipped 0.91 per cent to $35.84 per barrel.
(With agency inputs)