The BSE Sensex surged 740 points, while the Nifty snapped its 10-day losing streak on Wednesday, following value buying in utilities and power shares and a strong trend in the global markets.
The dollar hit a three-month low on Wednesday as the US’ trade war with its partners escalated, while a major overhaul to German government borrowing triggered the biggest sell-off in the country’s debt since the late 1990s.
In addition to the cocktail of tariffs and a seismic shift in German fiscal policy, investors also scrutinised the start of China’s annual sessions of its parliament at which Beijing retained a goal of 5 per cent economic growth for 2025.
German long-dated bonds saw their worst sell-off in years, the euro jumped to its highest level in almost four months and stocks rebounded on Wednesday after the parties in talks to form Germany’s new government agreed to try to loosen its fiscal rules.
Wall Street’s main indexes had a subdued start on Wednesday, after a jobs report fanned concerns of a slowing economy, while investors awaited a potential softer approach from President Donald Trump on trade policy.
In Asian markets, Tokyo, Shanghai, Hong Kong and Seoul closed higher. European markets were trading in the positive zone. Brent crude decreased 0.49 per cent to $70.69 a barrel.
Back home, the Sensex surged 740.30 points, or 1.01 per cent, to close at 73730.23. The index jumped 943.87 points, or 1.29 per cent, to hit an intra-day high of 73933.80.
Cutting short its record 10-day falling streak, the broader NSE Nifty rebounded by 254.65 points, or 1.15 per cent, to settle at 22337.30. During the day, it appreciated 312.25 points, or 1.41 per cent, to a high of 22394.90. The market capitalisation of BSE-listed firms rose ₹7,97,247.7 crore to ₹3,93,04,041.75 crore.
The rupee stayed firm for the third straight session and settled with a gain of 13 paise at 87.06 against the US dollar on Wednesday buoyed by a sharp recovery in domestic equities, a weak American currency and falling oil prices.
“Strong global market cues led the recovery in domestic indices as talks that the Trump administration could reverse some tariffs amidst the ongoing global trade tensions buoyed sentiment,” Prashanth Tapse, senior VP (research), Mehta Equities, said.
Local factors such as an increase in the February PMI index boosted sentiments.
“Emerging markets, including India, witnessed a relief rally, supported by a weakening US dollar. This upward momentum occurred despite the imposition of US tariffs on Mexico, Canada, and China, as well as the looming threat of retaliatory measures,” said Vinod Nair, head of research, Geojit Financial Services.
