Mumbai, Feb 2 Buying sentiment triggered by the positive reaction to Union Budget FY23 as well as robust global cues and attractive valuations lifted India's key equity indices S&P BSE Sensex and NSE Nifty50 on Wednesday.
Initially, the domestic equity market opened higher and remained in the green with minimal corrections.
The Sensex closed the day's session at 59,558.33 points, up by 695.76 points or 1.18 per cent from its previous close. Similarly, Nifty made gains on Wednesday, rising by 203.15 points or 1.16 per cent to 17,780 points.
Globally, markets seem set for their biggest four-day rally since November 2020 as companies from the US to Europe reported better-than-expected earnings while dip-buying returned to technology shares.
On Wednesday, markets in mainland China, Hong Kong, Singapore and South Korea were closed for the Lunar New Year holidays.
In Europe, investors' sentiment continued to remain steady after a rout last month.
On the domestic front, the market's volume was a little lower than recent average.
Among sectors realty, consumer durables, banks, IT and healthcare indices were the main gainers.
"FPI participation has fallen over the past two sessions which is reflected in the lower volumes. Advance decline ratio, however, is sharply positive suggesting broad participation in the midst of a halt in large FPI selling," said Deepak Jasani, Head of Retail Research, HDFC Securities.
"After three consecutive days of gains, Nifty could consolidate a bit over the next few days even as FPIs form their view on Indian markets post the Budget. For Nifty, 17,812-17,879 could be the resistance over the near term while 17,617 is the support," he added.
According to Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services: "We believe the markets will discount the Budget and shift focus to rising interest rate regime globally and consequent higher bond yields and corporate earnings growth that has remained resilient so far in the ongoing 3QFY22 earnings season.
"The forthcoming RBI policy meet assumes greater significance now with respect to the future of liquidity and interest rates. Q3FY22 earnings have been good so far, and from management commentary, Q4 numbers are expected to be strong. Overall, we remain positive on the market."
Vinod Nair, Head of Research at Geojit Financial Services, said: "The domestic market continued its bull ride, tracking Budget cues and positive sentiments from global markets. Most sectors remained green while banking and finance stocks contributed most to the gains."
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