Sensex rallies over 260 points, Nifty near 10,770 on MSP boost, auto stocks gain

At close, the BSE Sensex was up 266.80 points or 0.75% to 35,645.40, while the broader NSE Nifty settled near the 10,770 mark at 10,769.90, 70 points or 0.65% higher.

The market benchmark BSE Sensex on Wednesday purted by 266.80 points to close at 35,645.40, led by gains mainly in auto, bank and energy stocks despite weak global cues amid concerns related to trade war and macro conditions.

People watch a large screen displaying India's benchmark share index on the facade of the Bombay Stock Exchange (BSE) building in Mumbai. (Reuters File Photo)

Automakers Bajaj Auto Ltd. and Maruti Suzuki India Ltd. gained the most on the gauge.

Agri-linked stocks like kohinoor foods, LT foods, Chamanlal Setia Exports and KRBL rallied up to over 12% after the the government on Wednesday hiked the minimum support price for paddy by a steep ₹200 per quintal.

The Cabinet Committee on Economic Affairs (CCEA) at its meeting approved the MSP of 14 kharif (summer) crops.

Both key indices BSE Sensex and NSE Nifty posted gains for the second straight session, with consistent buying by domestic institutional investors and encouraging services PMI data for June lifting trading sentiment, said brokers.

The services sector returned to growth during June and registered the fastest rate of expansion in a year, supported by robust increase in new business orders, said a monthly survey.

Eleven of 19 industry sub-indexes compiled by BSE Ltd. advanced, led by a gauge of automobile companies. Vehicle makers clocked strong sales growth in June, industry data showed this week. Car maker Maruti Suzuki’s total vehicle sales jumped 36% from a year earlier in June, while Bajaj Auto’s motorcycle sales climbed 65%.

The BSE 30-share Sensex started on a positive note at 35,385.52 and advanced to the day’s high of 35,667.31 before ending at 35,645.40, up 266.80 points, or 0.75%.

However, the gauge touched the day’s low of 35,309.67. It had gained 114.19 points in the previous session.

The NSE Nifty, after hitting a high of 10,777.15, closed at 10,769.90, up 70 points, or 0.65%. It touched a low of 10,677.75 intra-day.

Meanwhile, on a net basis, domestic institutional investors (DIIs) bought shares worth ₹278.84 crore, while foreign portfolio investors (FPIs) sold equities worth ₹1,043.31 crore on Tuesday, provisional data showed.

European markets fell at the start of trade, tracking weak global cues.

-- With inputs from Bloomberg