Markets climb in early trade; extend rally for 2nd day status
The stock market continued its upward momentum in the morning session, building on the gains from the previous day. The benchmark indices rose more than 1% each, led by banking, IT and metal stocks. The positive global cues and the easing of covid-19 restrictions in some states also boosted the investor sentiment.
The BSE Sensex was trading at 52,734.36, up 590.36 points or 1.13%, while the NSE Nifty was at 15,837.85, up 178.85 points or 1.14%. The broader markets also outperformed the main indices, with the BSE Midcap and Smallcap indices rising 1.5% and 1.8%, respectively.
Among the sectoral indices, the BSE Bankex was the top gainer, up 2.2%, followed by BSE IT (up 1.9%) and BSE Metal (up 1.8%). The BSE Realty and BSE Auto indices were also up over 1% each. The only laggard was the BSE Healthcare index, which was down 0.2%.
The market rally was supported by the strong global cues, as the US and European markets closed higher on Tuesday, amid optimism over the economic recovery and easing of inflation worries. The Asian markets were also trading higher on Wednesday, following the positive lead from Wall Street.
The domestic market also got a boost from the easing of covid-19 restrictions in some states, as the daily cases and deaths declined further. The government data showed that India reported 42,640 new covid-19 cases and 1,167 deaths in the last 24 hours, the lowest in over two months.
The market participants are also awaiting the outcome of the US Federal Reserve's policy meeting, which will conclude later today. The Fed is expected to maintain its accommodative stance and reiterate its commitment to support the economic recovery. However, any hint of tapering its bond-buying program or raising interest rates could trigger volatility in the global markets.
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