Benchmark Indian indices surged to a two-month high in the late morning trade on Wednesday, following other Asian markets, which rose on hopes of cues about tax cuts and infrastructure boost by the US President-elect Donald Trump.
Trump is scheduled to address his first conference as the US President-elect later today.
BSE Sensex crossed the 27,000-mark and provisionally ended at 27,140.41 points, up 240.85 points from the previous close. The broader NSE Nifty 50 closed 92.05 points higher at 8380.65 points.
Financial stocks were among the major gainers, contributing more than half of the gains in the markets. IndusInd Bank was up 5.5% and South Indian Bank rose 2% on the back of good third-quarter financial results announced earlier. This also pulled up the stocks of other major banks too on hopes of strong results. HDFC Bank, HDFC Ltd, ICICI Bank and State Bank of India were up 1-2% each. Nifty Bank index was up 1.58% to its highest levels in over a month.
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Major IT stocks, on the other hand, were dragging on the concerns of hints of tougher measures by Trump to protect jobs at home and curbing outsourcing. Tata Consultancy Services, India’s biggest information-technology outsourcing firm, lost over 1.1%, while the bellwether Infosys was down about half-a-percent. Both the companies are scheduled to announce their third quarter earnings later this week. HCL Tech, another IT firm, was trading 0.7% lower that its previous close.
Other major gainers included Hindalco (6.1%), Coal India (5.3%), Tata Steel (4%).