The Bombay Stock Exchange’s benchmark Sensex continued to regain lost ground on Wednesday, rising by 409 points or 2.5 per cent to close at 16,849.6.
The Sensex has risen 9.4 per cent over the past six trading sessions after having lost over 11 per cent in the 10 previous trading sessions.
The broader Nifty breached the 5,000 mark again, gaining 122 points or 2.5 per cent to close at 5003.9 on Wednesday.
“The government’s move on disinvestments and GST has resurrected investor confidence,” said Manish Bandi, vice president, India Infoline.
“The markets got positive cues from Asia as China reported continued strength in industrial production growth showing signs of recovery in global economy,” felt Alex Mathews, head of research, Geojit BNP Paribas Financial Services.
The Indian markets’ surge was in line with the rise in global markets, and they have in fact been following the global trend more closely in the recent past.
“The correlation with the global markets is increasing significantly hence a rise in global indices has also helped in the rise,” said Bandi.
But the rise in India was significantly higher than other markets. Shanghai Composite in China closed flat, Hong Kong was up just 1.6 per cent, and Singapore 1.2 per cent.