Positive global cues, along with the announcement on consolidation of public sector banks, lifted the key Indian equity indices -- the NSE Nifty 50 and the BSE Sensex -- on Wednesday.
According to market observers, broadly positive global indices and healthy buying in banking, metal and automobile sector stocks supported equity indices' upward trajectory.
The 30-scrip Sensitive Index (Sensex) closed higher by 276 points or 0.88 per cent.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) gained 86.95 points or 0.89 per cent to 9,852.50 points.
The Sensex of the BSE, which opened at 31,407.47 points, closed at 31,568.01 points, up 276.16 points or 0.88 per cent from Tuesday's close at 31,291.85 points.
The Sensex touched a high of 31,593.39 points and a low of 31,379.25 points during the intra-day trade.
The initial trade session on Wednesday saw both the BSE Sensex and the NSE Nifty open higher against their respective previous session's close. The Indian rupee also opened on a strong note against the US dollar.
Around 3 p.m. Finance Minister Arun Jaitley announced that "in principle" approval has been granted by the Union Cabinet for the consolidation of state-run banks through mergers.
The announcement led to massive gains in public sector bank's stocks.
"Nifty displayed a sharp upmove today and closed the day with handsome gains of 0.89 per cent. After opening on a positive note today, Nifty shifted into intra-day consolidation within a narrow high low range for better part of the session," Deepak Jasani, Head of Retail Research, HDFC Securities, told IANS.
"Buying emerged in the last hour of trade. Gains in banking shares propelled key indices higher. Reports suggest that the Union Cabinet has given "in-principle approval" to set up an alternative mechanism to go ahead with the PSU Banks consolidation process."
On the currency front, the Indian rupee closed on a flat note to 64.11 to a US dollar from its Tuesday's close.
"The Sensex and Nifty traded higher on Wednesday... but were confined to a narrow range for want of fresh triggers after a tepid results season," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
Major Sensex gainers on Wednesday were: Adani Ports and Special Economic Zone, up 2.82 per cent at Rs 385.05; Bharti Airtel, up 2.41 per cent at Rs 431.80; Tata Steel, up 2.28 per cent at Rs 633.40; Dr Reddy's Lab, up 2.25 per cent at Rs 2,029.50; and Infosys, up 1.98 per cent at Rs 894.50.
Major Sensex losers were: Hindustan Unilever, down 1.10 per cent at Rs 1,187.55; Sun Pharma, down 0.45 per cent at Rs 468.75; ITC, down 0.28 per cent at Rs 282.25; Mahindra and Mahindra (M&M), down 0.13 per cent at Rs 1,372.85; and Tata Consultancy Services (TCS), down 0.12 per cent at Rs 2,493.
--IANS
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