Market close: Sensex scales 39,000

In the last hour of trade on Wednesday, the BSE Sensex, Nifty and Bank Nifty surged stupendously. Sensex gained more than 500 points. Mid-cap and small-cap stocks also participated in the rally.

Sensex and Nifty broke their 3-day downtrend. Sensex closed with gains of 489.80 or 1.27 per cent at 39,054.68, while Nifty closed up by 150.20 points or 1.30 per cent at 11,726.15. In-line with the benchmark index gains, Bank Nifty also gained by 1.29 per cent or 381.10 points to close at 29,860.80. The Nifty Mid-cap gained up by 0.37 per cent and Nifty Small-cap closed up 0.79 per cent.

Among the top gainers of Nifty were HCL Tech and IndusInd Bank, up by more than 3 per cent, followed by ONGC, Bharti Airtel, Yes Bank and HDFC up more than 2 per cent. Among the top losers were Axis Bank, Power Grid, Coal India, Hero Moto, Maruto and Tata Motors which lost the most down more than 3 per cent.

Sectorally, Nifty IT, Media and Bank indices were up by around 1.20 per cent, while Nifty Pharma, Realty and FMCG indices were up by 0.75, 0.65, 0.45 per cent, respectively. The only index that closed red was the Auto index. The fall in the auto stocks can be attributed to cut in discounts and prices hikes.

Overall, fresh FIIs buyings fuels the index higher in the last hour of trade. Experts believe the rally is in anticipation of the current government getting reelected to power. Market rally is also in-line with the let-off in the crude oil price surge as the Middle eastern countries vouch to fill-up the gap due to sanctions on Iranian oil.