Sensex Soars 1,040 Pts, Nifty Nears 17k As Bulls Regain Footing

Equity indices roared back to life on Wednesday after a day's pause on across-the-board buying, in tandem with a sharp rebound in world stocks amid hopes of a breakthrough in Russia-Ukraine talks.

A strong recovery in the rupee added to the momentum, while investors also awaited the US Federal Reserve's policy announcement later in the day.

The 30-share BSE Sensex surged 1,039.80 points or 1.86 per cent to finish at 56,816.65. Likewise, the broader NSE Nifty jumped 312.35 points or 1.87 per cent to 16,975.35.

Ultratech Cement was the top performer in the Sensex pack, spurting 4.69 per cent, followed by Axis Bank, IndusInd Bank, HDFC, Infosys, Bajaj Finserv and Bajaj Finance.

Only two counters closed in the red -- Sun Pharma and PowerGrid, dipping up to 0.35 per cent.

Global equities clambered up after Ukraine said there is possible room for compromise in talks with Russia, even as the Russian forces intensified its bombardment of Kyiv.

Ukrainian President Volodymyr Zelensky said Russia's demands were becoming more realistic. Both the countries are likely to hold talks again on Wednesday.

"Ease in FII selling and crude prices is adding strength to the domestic trend. Positive global cues and strong bounce back by the Chinese market in anticipation of stimulus supported the trend.

"The world equity market has stabilized factoring in a 25 bps hike by US Fed, an in-line policy outlook, will be a relief to the market and we may see a drop in volatility," said Vinod Nair, Head of Research at Geojit Financial Services.

Ajit Mishra, VP - Research, Religare Broking Ltd, markets will first react to the US Fed meeting outcome in early trade on Thursday.

"We recommend booking some profits on the rise, citing immediate hurdles around the 17,150 zone and focusing on identifying opportunities in sectors that are trading in sync with the benchmark," he noted.

All BSE sectoral indices notched up gains, led by realty (3.66 per cent), metal (2.56 per cent), basic materials (2.55 per cent), consumer durables (2.13 per cent) and auto (2.09 per cent).

In the broader markets, the BSE midcap and smallcap indices spurted as much as 1.80 per cent.

Elsewhere in Asia, bourses in Tokyo, Seoul, Hong Kong and Shanghai closed with healthy gains. Chinese markets stabilised after Beijing signalled support for US-listed Chinese stocks.

Stock exchanges in Europe were also trading significantly higher in mid-session deals.

Meanwhile, international oil benchmark Brent crude rose 2.94 per cent to USD 102.85 per barrel.

The rupee rallied 44 paise to a nearly two-week high of 76.18 against the US dollar on Wednesday.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 1,249.74 crore on Tuesday, as per provisional data.