An evening walk down Dalal Street

Bulls make a comeback and how! The Indian rupee saw a sharp rise on reports that the government may hold a meeting to discuss the economic situation and probably roll out policies for the currency. And it is this move that helped in a strong surge on equity benchmarks on Wednesday.

The rupee surpassed the level of 72 per US dollar-mark, leading to a massive buying among investors. The Sensex managed to end over 300 points higher, while the Nifty rose above 11,350-mark. 

Sharp buying among major sector such as banks, FMCG, infrastructure, metals, and pharmaceuticals led to the upmove on Sensex and the Nifty. The Nifty Midcap index rose over one-third of a percent. The likes of HDFC Bank, Reliance and ITC, among others, rallied and helped the indices have a strong close.

The day began on a negative note, following weak global cues as well as strained rupee as well. In fact, the Indian currency opened at a record low. Through the day, rangebound moves were observed on D-Street, with bouts of volatility as well.

However, after lunch, reports emerged that PM Modi will be holding a meeting to take note of the economic situation and there could be some measures decided over the weekend. That led to a sharp rise in the rupee as well as the market, and buying counters were buzzing across sectors.

Maximum gains were visible among consumer stocks, led by gains in ITC and HUL. Rally in index heavyweights such as Reliance Industries and HDFC Bank too aided sentiment on the market.

Investors may also have been upbeat about trade deficit data for August, which has seen some narrowing for the month at USD 17.4 billion.

At the close of market hours, the Sensex ended up 304.83 points or 0.81% at 37717.96, while the Nifty is higher up 82.40 points or 0.73% at 11369.90. The market breadth is still negative as 1,119 shares advanced, against a decline of 1,512 shares, while 198 shares were unchanged.

Equity markets will be shut tomorrow on account of Ganesh Chaturthi.