Share market HIGHLIGHTS today: Sensex and Nifty made a sharp recovery in the afternoon trade deals on Wednesday and closed trade higher after the government highlighted the importance of autonomy of the Reserve Bank of India (RBI) in a bid to calm investors worried about a growing public quarrel with the central bank. In a finance ministry statement, the government said the RBI’s independence was “an essential and accepted governance requirement”.
On closing, the Sensex surged 550.92 points or 1.63% to end at 34,442.05 points. The BSE market breadth was bullish with 1,613 advances and 941 declines. The Nifty ended at 10,386.60 points, up 188.20 points or 1.85%. The Nifty Bank index closed trade 1.39% higher. Tech Mahindra, Indiabulls Housing Finance, HDFC, HCL Technologies, and UPL were the top gainers on the Nifty.
The equity markets and the domestic currency had turned choppy in the morning trade session amid reports that RBI Governor Urjit Patel may consider resigning given the breakdown in relations, said a Reuters report. Besides, profit booking in most metals, PSU banks, FMCG and auto stocks had pulled the stock market lower in the morning session.
In the global markets, Asian stocks pulled away from 20-month lows following a rebound on Wall Street, although investors remained cautious after an October month that saw sharp downturns across global equity markets, according to a Reuters report. Oil prices recovered slightly after dropping to multi-month lows the previous day on signs of rising supply and concern that global economic growth and demand for fuel will fall victim to the U.S.-China trade war.