EEB’s sensex rose 724 points or 1.78 percent more to finish at 41,340; while the broader NSE Nifty it closed 212 points or 1.78 percent higher at 12,120.
All stocks in the 30-share BSE index finished green with SBI, Tata Steel, IndusInd Bank, Bajaj Finance, Bajaj FinServ and HCL Tech gaining as much as 5.63%.
On the NSE platform, the Nifty Metal, Media, Bank and PSU Bank sub-indices rose as much as 4.40 percent.
These are the main reasons behind this market rebound:
* Results of the US elections:
Global stocks rose as investors awaited the outcome of the US presidential election and embraced the bright side of further stagnation in Washington. The fate of the U.S. presidency remained undecided, as neither President Donald Trump nor Democratic challenger Joe Biden had obtained the 270 Electoral College (EC) votes needed to win.
* Bank actions:
Analysts said strong earnings from the country’s largest lender, SBI, boosted bank stocks. SBI has reported an optimistic profit in the September quarter and said it expected stronger annual credit growth.
The NSE banking index rose for the fourth consecutive session since private sector lender ICICI Bank reported a higher profit last week.
“Large banks have benefited from lower deposit rates and greater liquidity during the Covid-19 crisis. The banking sector has had a very good run, but we need to see if credit growth recovers,” Samrat Dasgupta, CEO of Esquire Capital Investment Advisers, told Reuters news agency.
* Growth of the services sector:
The country’s service sector activity ended the seven-month sequence of decline and posted growth in October, supported by improving market conditions amid easing of Covid-19 restrictions, a survey showed. monthly on Wednesday.
At 54.1 in October, down from 49.8 in September, the seasonally adjusted India Services Business Activity Index registered above the 50 mark unchanged for the first time since February. An impression above 50 means expansion, while a score below indicates contraction, according to the IHS Markit India Service Purchasing Managers Index (PMI).
* Fed meeting:
The US Federal Reserve is scheduled to release its latest policy statement and can keep interest rates unchanged. With the final outcome of the US presidential election still uncertain, the Federal Open Market Committee that sets the central bank’s policies is expected to stick to its latest statement and repeat its promise to do everything possible to help the economy to overcome the recession caused by the coronavirus.
* Bank of England stimulus boost:
London shares rose after the Bank of England extended a stimulus program to cushion Britain’s struggling economy as England enters a second national lockdown. The Bank of England increased its already massive asset purchase program by 150 billion pounds ($ 195 billion) and said it expects the British economy to contract 11% in 2020, more severe than the 9.5% contraction. I had forecast in August.
(With contributions from the agency)
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