Sensex rose by 659.31 points or 1.12% to close at 59,688.22. The benchmark has touched an intraday high of 59,711.96.
Stocks like Tech Mahindra, Axis Bank, ICICI Bank, M&M, Bharti Airtel, Ultratech Cement, Bajaj Finserv, and Indusind Bank were among the top bulls. While Tata Steel stock underperformed, with Titan, NTPC, and Nestle witnessing slight downside correction.
BSE Bankex surged more than 875 points, while IT and Capital Goods indexes contributed by gaining 289.36 points and 216.92 points respectively. Metal and consumer durable stocks were top laggards.
Riding on the back of the bullish sentiment, BSE-listed equity firms' market cap stood at nearly ₹282.67 lakh crore which is a fresh all-time high. On the previous day, the market cap was around ₹280.87 lakh crore.
Compared to the previous day, the market cap has risen by over ₹1.79 lakh crore.
Vinod Nair, Head of Research at Geojit Financial Services said, "The domestic financial market experienced a wave of optimism tracking strength across global markets as oil prices eased, cooling investor concerns about rising inflation. Despite premium valuations, consistent FII inflows are aiding Indian bourses to stay resilient. On the sectoral front, auto stocks were in focus as retail sales of automobiles grew 8.31% YoY in august while banking stocks moved in sync"
Meanwhile, Sensex counterpart Nifty 50 settled at 17,798.75 higher by 174.35 points or 0.99%. The 50-scrip benchmark had crossed the 17,800-mark during the day before correcting marginally.
Further, Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said, "Positive global cues helped markets rebound from 2-day losses led by banking stocks. India's growth resilience is something that investors are betting on considering concerns of a global slowdown amid rising interest rates."
At the interbank forex market, the Indian rupee closed at 79.72 against the US dollar appreciating by 23 paise compared to the previous day's close. Easing in crude oil prices coupled with buying spree in domestic equities supported the local unit.
As per NSDL data, as of September 8, this month, FPIs have pumped in ₹2,757 crore in the equity market.
Also, Mitul Shah - Head of Research at Reliance Securities said, "The Finance Minister Nirmala Sitharaman stated that the share of Russian oil in India's overall oil import basket increased from 2% to 13% in a couple of months after the beginning of the Russia-Ukraine war, which has led to a spike in energy prices globally."
