The 30-stock BSE index jumped 266.09 points.
The benchmark Sensex market rose more than 200 points early in Wednesday, following gains from index majors HDFC Bank, Reliance Industries and Infosys ahead of the Reserve Bank chief’s speech.
RBI Governor Shaktikanta Das will make an unscheduled announcement at 10 a.m.
The 30-stock BSE index jumped 266.09 points or 0.55% to 48,519.60 in initial trades.
Likewise, the larger NSE Nifty advanced 81.45 points or 0.56% to 14,577.95.
ONGC was the first winner of the Sensex pack, gaining more than 2%, followed by NTPC, IndusInd Bank, Bharti Airtel, Titan, Axis Bank and UltraTech Cement.
In contrast, HDFC, Nestlé India and HUL were among the laggards.
In the previous session, Sensex finished 465.01 points or 0.95% lower to 48,253.51, and Nifty fell 137.65 points or 0.94% to 14,496.50.
Foreign Institutional Investors (FIIs) were net sellers in the capital market as they unloaded shares worth Rs 1,772.37 crore on Tuesday, while Domestic Institutional Investors (DII) bought shares from a value of Rs 987.34 crore, according to provisional exchange data.
“The RBI governor’s announcements on Wednesday are likely to influence markets, especially certain segments like banking. The relief for MSMEs and retail borrowers could have a positive impact on banks that have a higher proportion of these. The PSU banks rally on Tuesday could be in anticipation of that, ”said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
The market is currently caught between fear of the economic downfall of the second wave of the pandemic and hope arising from the flattening of the COVID-19 curve, he said, adding that a little more will be needed. time for clarity to emerge on which of the two will have a greater impact on the markets.
“If we look at the experiences of countries that have passed through the second wave, such as the UK, hope will triumph over fear. GDP and earnings growth in the first quarter of FY22 will suffer, but is expected to recover over the next few quarters, ”he noted.
Elsewhere in Asia, the Hong Kong stock exchanges were trading flat in midterm deals, while Seoul, Shanghai and Tokyo were closed for the holidays.
Wall Street stocks ended on a negative note in overnight trading.
Meanwhile, international benchmark Brent crude oil was trading 2.61% higher at $ 69.32 per barrel.