SENSEX surges 790 points, NIFTY50 reclaims 26,100; here are key reasons behind rally

The Indian equity benchmarks extended gains in late morning deals on Wednesday, November 26, on the back of strong global cues amid rising expectations of a rate cut by the US Federal Reserve in December.

The SENSEX rose as much as 790 points and NIFTY50 index reclaimed its psychologically important level of 26,100 led by gains in Reliance Industries, State Bank of India, ICICI Bank, Axis Bank, Larsen & Toubro and Bajaj Finserv.

As of 10:56 am, the SENSEX climbed 710 points to 85,303 and NIFTY50 index advanced 227 points to 26,111.

Global markets surge

Asian markets extended gains to a third straight session on Wednesday tracking gains on Wall Street as latest consumer data boosted hopes of Federal Reserve rate cut next month.

Japan's Nikkei climbed 1.96%, Hong Kong's Hang Seng advanced 0.57%, South Korea's KOSPI jumped 1.66%, Singapore's Straits Times rose 0.52 and China's Shanghai Composite rose 0.08%.

Wall Street extended its rally on Tuesday as a spate of economic data appeared to support the case for the US Federal Reserve to implement its third and final rate cut of the year in December, while softness in the tech sector limited the Nasdaq's gains, news agency Reuters reported.

Buying across sectors

Buying was visible across board as all the major sector gauges compiled by the National Stock Exchange were trading higher led by the NIFTY Metal index's 1.63% gain, NIFTY Bank, IT, Private bank, PSU Bank, Auto, Consumer Durables and Oil & Gas indices also rose between 0.6%-1.2%.

Broader markets were outperforming their larger peers as NIFTY Midcap 100 index advanced 0.7% and NIFTY Smallcap 100 index climbed 0.9%.

Among the individual stocks, Tata Investment Corporation surged as much as 9.41% to hit an intraday high of ₹795 amid higher than usual trading volumes.

Trading volume on the NSE spiked by nearly 9 times to 30.27 lakh shares compared with an average trading volume of 3.52 lakh shares.

As many as 2.83 lakh Tata Investment Corporation shares changed hands on the BSE compared with an average of 58,000 shares traded daily in the past two weeks.

NIFTY50 shares surge

All but two shares in the NIFTY50 index were trading higher. JSW Steel was top gainer in the NIFTY50 index, the stock rose 3.15% to ₹1,147.

Tata Motors Passenger Vehicles, Adani Ports, Tata Steel, HDFC Life, Bajaj Finserv, Wipro, Trent, Axis Bank and Jio Financial Services also rose between 1.16%-2.23%.

On the flipside, Bharti Airtel and Eicher Motors were among the notable losers in the NIFTY50 index.

The overall market breadth was extremely positive as 2,406 shares were advancing while 806 were declining on the BSE.