The Sensex today went past the 32,000- mark for the first time ever, soaring over 232 points, and the Nifty closed at a new peak of 9,892 as inflation hit a record low, offering the RBI leeway for a lower policy rate. The BSE market breadth was bullish with 1,678 advances and 835 declines.
Other gainers included Bharti Airtel, ITC, Dr. Reddy's and Tata Consultancy Services, up between 2 percent to 3 percent. But what pulled back the slide was continuous foreign capital inflows and a slightly higher opening in the domestic stock market.
The BSE Sensex and Nifty fell on Tuesday as shares of cigarette maker ITC plunged almost 15 per cent after the GST Council yesterday chose to hike compensation cess on cigarettes.
"Markets rallied higher on Wednesday after the sharp correction seen on Tuesday. European indices like FTSE 100, CAC 40 and DAX traded higher", Jasani added. This is the highest close for the rupee since June 9 when it had settled at 64.24 against the United States dollar.
Foreign institutional investors (FIIs) were net buyers in the equity segment worth Rs 10.46 billion on both BSE, NSE and MCX-SX on July 19, as per provisional data available at the BSE. At 1.00 p.m., the wider Nifty of the National Stock Exchange (NSE) rose by 48.70 points, or 0.50 per cent, to trade at 9,875.85 points.
"Indian equity benchmarks gained most in over a week led by drug makers and telecom companies".
Also, positive cues from other Asian markets on fresh record closing in the U.S. market owing to strong earnings and higher oil prices boosted the domestic sentiment. However, buying in IT, tech, healthcare, auto and banking helped the index trim losses.
The Hindustan Unilever stock on Wednesday hit a fresh yearly high on its healthy Q1 earnings announced a day ago.
FMCG giant Hindustan Unilever pared early gains to close half a percent lower after reporting a 9 percent rise in its June quarter net profit in the run up to GST implementation.