Sensex gains 178 pts, Nifty reclaims 8600-mark on reform hopes

The benchmark BSE Sensex on Wednesday rose for a second day, rising 178.35 points to 28,533.97 and the National Stock Exchange's Nifty regained the 8,600-mark, on hopes of acceleration in economic reforms after the Bharatiya Janata Party was trounced by the Aam Aadmi Party in Delhi Assembly polls.

Extending previous session's recovery, the domestic markets witnessed positive start on Wednesday, tracking firm global cues and consolidated thereafter till the end.

Shares of capital goods, metal, power and banking sectors were the major gainers of the day. Small-cap and Mid-cap indices also shot up by 1.47 per cent and 1.55 per cent.

Investors are keenly focused on the the new government's first full-year budget, looking at it as a gauge to measure the government's reform momentum.

"The upcoming Budget could be the most important one for the stock market after the early 1990s, when India launched economic liberalization," said Morgan Stanley in a report.

The BSE Sensex resumed higher at 28,450.26 and hovered in a range of 28,618.91 and 28,424.39 before ending at 28,533.97, showing a net gain of 178.35 points or 0.63 per cent. In two days, it has now gained 306.58 points or 1.09 per cent.

"The upside remained capped as participants preferred to maintain cautious view ahead of crucial macro-economic data release of IIP and CPI inflation.

"Interestingly, all the sectoral indices participated in the move and ended in green, which aided market breadth to close strongly on the advancing side," said Religare Securities, President-retail distribution, Jayant Manglik.

Similarly, the CNX 50-share of the Nifty also rose by 61.85 points or 0.72 per cent to end at 8,627.40.

Asian stocks ended higher today after a firmer finish of US stocks yesterday. Key indices in China, Singapore, Taiwan and South Korea firmed up by 0.30 per cent to 0.51 per cent while Hong Kong's Hang Seng fell 0.88 per cent. The Japanese market remained closed today for a holiday.

US stocks rose yesterday buoyed by hopes for a deal between Greece and its international creditors.

European stocks were trading lower in their afternoon trade as investors awaited developments on the Greek debt front. Key indices in France, Germany and the UK moved down by 0.09 per cent to 0.52 per cent.