Recovery in markets makes investors richer by Rs 3.20 lakh cr

Investors' wealth climbed Rs 3.20 lakh crore as markets staged a smart comeback on Wednesday after falling in the last eight trading sessions.

The BSE Sensex rallied 448.96 points or 0.76 per cent to settle at 59,411.08.

During the day, it jumped 513.33 points or 0.87 per cent to 59,475.45.

In the past eight days, the BSE benchmark tumbled 2,357.39 points or 3.84 per cent.

The bounce back in the equity market added Rs 3,20,574.19 crore taking the market capitalisation of BSE-listed firms to Rs 260 lakh crore (Rs 2,60,93,075.59 crore) at the end of trade.

"Markets witnessed a relief rally after 8 sessions of losses, as broad-based buying on the back of short-covering and uptick in European and select Asian indices aided the sentiment.

"The recovery was expected as the market had witnessed relentless selling over the past week or so due to weak global cues and slowdown concerns," Shrikant Chouhan, head of equity research (retail), Kotak Securities Ltd, said.

From the Sensex pack, State Bank of India, Axis Bank, Tech Mahindra, HCL Technologies, Tata Consultancy Services, IndusInd Bank, Maruti Suzuki, Tata Steel and Tata Motors were the major gainers.

Power Grid and HDFC Bank were the laggards from the pack.

In Asian markets, Japan, China and Hong Kong ended in the positive territory. Equity exchanges in Europe were trading in the green.

The US markets ended lower on Tuesday.

"The Indian market was oversold and needed encouraging domestic triggers to show signs of revival.

"The manufacturing PMI reported was better than predicted at 55.3, even though India's Q3 FY23 GDP statistics came in slightly below expectations at 4.4%. Solid global markets, bolstered by strong Chinese manufacturing data, also ignited optimism in the domestic market," said Vinod Nair, head of research at Geojit Financial Services.

In the broader equity market, the BSE smallcap gauge climbed 1.38 per cent and midcap index advanced 1.35 per cent.

All the sectoral indices ended higher, with metal rallying 2.61 per cent, commodities jumping 2.30 per cent, IT (1.36 per cent), teck (1.28 per cent), industrials (1.25 per cent), bankex (1.15 per cent) and capital goods (1.11 per cent).