Sensex soars 630 points, Nifty reclaims 10,700-mark

Major gainers in the Sensex pack were Hero Motocorp, which rallied 7.01 per cent, followed by Bharti Airtel (6.69 per cent), Yes Bank (5.30 per cent), Adani Ports (4.90 per cent), Tata Steel (3.75 per cent) and Bajaj Auto (3.70 per cent).

Benchmark indices defied gravity for the second straight session on Wednesday as investors gave a thumbs-up to the prompt appointment of former bureaucrat Shaktikanta Das as the new RBI Governor.

The BSE Sensex zoomed 629.06 points, or 1.79 per cent, to end at 35,779.07, while the broader NSE Nifty rallied 188.45 points, or 1.79 per cent, to 10,737.60.

All the 30 Sensex stocks as well as BSE sectoral indices finished with gains, led by realty, auto, metal, capital goods and financial counters.

Major gainers in the Sensex pack were Hero Motocorp, which rallied 7.01 per cent, followed by Bharti Airtel (6.69 per cent), Yes Bank (5.30 per cent), Adani Ports (4.90 per cent), Tata Steel (3.75 per cent) and Bajaj Auto (3.70 per cent).

Analysts said the quick appointment of the new RBI governor and expectations of more steps to ease the liquidity situation bolstered trading sentiment.

Former economic affairs secretary Shaktikanta Das on Wednesday assumed charge as the 25th governor the RBI.

He replaces Urjit Patel, who abruptly resigned amid a face-off with the government over issues related to governance and autonomy of the central bank.

On the appointment, SBI Chairman Rajnish Kumar said, "This will ensure continuity in monetary policy making and regulatory measures even as the global economy is passing through uncertain times.

“The financial markets will also significantly benefit from the appointment of newly appointed Governor given his rich prior experience in fiscal policies and trade.

“This will also ensure a convergence of domestic and external policies."

Meanwhile, foreign funds sold shares worth Rs 2,421.06 crore on a net basis Tuesday, while domestic institutional investors bought equities worth Rs 2,255.68 crore, provisional data showed.

Brent crude oil futures was trading 1.86 per cent higher at $61.32 per barrel.

Elsewhere in Asia, Korea's Kospi rose 1.44 per cent, Japan's Nikkei soared 2.15 per cent, Hong Kong's Hang Seng surged 1.61 per cent and Shanghai Composite Index inched up 0.31 per cent.

In Europe, Frankfurt's DAX rose by 1.04 per cent and Paris' CAC 40 jumped 1.57 per cent in early deals. London's FTSE too soared 1.11 per cent.

Photograph: Reuters