Budget rebound continues
The Nifty on Wednesday closed above the 12000 mark and the Sensex gained more than 353 points as investors reacted to positive global cues and some good news on the domestic front.
The key indices have in the past three sessions overcome the budget blues with the 30-share Sensex gaining over 1407 points or 3.54 per cent.
China’s efforts in limiting the adverse economic impact of the coronavirus have improved sentiment.
Back home, a monthly survey said that India’s services sector activity surged to a seven-year high in January, driven by a sharp increase in new business orders, leading to jobs creation and business optimism amid favourable market conditions. The IHS Markit India Services Business Activity Index rose from 53.3 in December to 55.5 in January, signalling the strongest upturn in output in seven years.
Wednesday’s gains came on the eve of the RBI’s monetary policy. The monetary policy committee is widely expected to leave the policy rate unchanged. However, the focus will be on the guidance and the central bank’s take on the fiscal deficit projected in the Union budget.
The Sensex opened strong at 40921.71 and breached the 42000 mark to hit an intra-day high of 41177.00. It later ended at 41142.66 — a gain of 353.28 points or 0.87 per cent. The NSE Nifty rose 109.50 points to settle at 12089.15 — taking the three-day gains to 427.30 points or 3.66 per cent.