The Indian stock market surged on Wednesday, with the benchmark Sensex index rising 690 points to close at 71,060. The Nifty 50 index also rose 215 points to close at 21,453. The rally was broad-based, with gains in all major sectors. Banking, IT, auto, pharma, FMCG, metals, energy, infrastructure, consumer durables, healthcare, and oil and gas stocks all rose.
Mid-cap and small-cap stocks also rebounded strongly after a decline on Tuesday. The Nifty Midcap 100 index rose 853 points to close at 28,705, and the Nifty Small cap 100 index rose 260 points to close at 14,503. The surge in the stock market boosted investor wealth by 5.5 trillion rupees ($71.6 billion). The market capitalization of the BSE rose to 371.39 trillion rupees from 365.97 trillion rupees on Tuesday.
The rally was attributed to a combination of factors, including strong corporate earnings, positive global cues, and expectations of further rate hikes by the Reserve Bank of India. "The market is seeing a strong rally on the back of positive corporate earnings," said Ajit Mishra, vice president at Religare Broking. "Investors are also betting on further rate hikes by the RBI, which will boost interest rates on fixed deposits."
The Sensex is now up 11.1% for the year, while the Nifty is up 10.7%.