Investors richer by over Rs 7.21 lakh cr in two days of market rally

Equity investors became richer by over Rs 7.21 lakh crore as stock markets continued the rally for the second day on Wednesday.

The 30-share BSE Sensex opened in the green on Wednesday and further jumped 1,469.64 points or 2.75 per cent to 54,893.73 during the day.

It finally settled at 54,647.33, higher by 1,223.24 points or 2.29 per cent amid reports of diplomatic efforts to end Russia's attack on Ukraine.

On Tuesday, it settled at 53,424.09, higher by 581.34 points or 1.10 per cent.

With the recovery in equities, the market capitalisation of BSE-listed companies jumped by Rs 7,21,949.74 crore to Rs 2,48,32,780.78 crore in two days.

Markets had faced four sessions of heavy declines from February 28 to March 7.

"Markets extended Tuesday's rebound and gained over 2 per cent, tracking recovery in global indices.

"After a flat start, the benchmark inched gradually higher as the day progressed and settled closer to the day's high.

"Heavyweights like Reliance, HDFC Bank and Infy contributed half of the index gains," according to Ajit Mishra, VP - Research, Religare Broking Ltd.

The recent rebound is in line with the global counterparts and it would be too early to call it a reversal, Mishra added.

From the 30-share pack, Asian Paints, Reliance Industries Limited, Bajaj Finance, Mahindra & Mahindra, Indusind Bank, Bajaj Finserv, Maruti Suzuki, HDFC Bank and UltraTech Cement were the major gainers on Wednesday, jumping up to 5.56 per cent.

In the broader market, the BSE midcap index jumped 2.37 per cent and the smallcap gauge gained 2.16 per cent.

Among BSE sectoral indices, energy, realty, auto, consumer discretionary goods & services were the lead gainers, jumping up to 3.58 per cent.

In contrast, utilities, metal and power settled lower.

Siddhartha Khemka, head - Retail Research, Motilal Oswal Financial Services Ltd, said, in the near-term, volatility cannot be ruled out till uncertainty looms over the Ukraine conflicts.

"Investors will watch out for the state elections result on Thursday," Khemka added.