Taking cues from the positive sentiment in Asian markets, benchmark indices jumped with Nifty 50 index rising as much as 0.93% to 12,220.90 and Sensex rallying 1.01% or 413 points to 41,631.91.
Here are given some of the main reasons behind stock market's rally today:
1. Threat of coronavirus epidemic easing: On Wednesday as per the remarks of the National Health Commision of China the number of new confirmed cases of coronavirus fell to their lowest at 2,015 since late January. "I hope this outbreak or this event may be over in something like April," Zhong, a senior medical officer of Beijing who played a key role in tackling Severe Acute Respiratory Syndrome (SARS) outbreak in 2003, told Reuters.
Street took the report positively as with the epidemic spreading world over there was seen a threat to world economic growth which is already reeling under high stress.
2. Nifty FMCG scales 600 points: Pushed by gains in stocks including HUL, Nestle, Godrej, Dabur, the Nifty FMCG index surged to a day's high of 31084.45. At 1:09 am, the index was trading higher by 2.04%, with gains of 622 points.
3. Positive comments from Sitharaman and Economic adviser: On Tuesday, the finance minister Nirmala Sitharaman said Indian economy is on the path of recovery and cited higher GST collection for the past 3 months, increase in factory output and surge in foreign investment as pointers to green shoots in the economy. Also, she took note of steps taken to boost exports such as increased credit for exporters as well as tax refund scheme.
Also, at the finance ministry comments from principal economic adviser Sanyal were taken positively by investors who said that economy is on the brink of a bounce back as the centre has resorted to measures for bolstering consumer demand and investments. 'Economic growth was set to accelerate to 6 per cent in the financial year beginning in April', said the adviser.
4. India Inc's increase in foreign investments by 40%: Market participants cheered the latest RBI data on 'Outward Foreign Direct Investment (OFDI) that revealed a sharp surge in India Inc.'s offshore investments in January, up by almost 40% year-on-year to $2.1 billion.
Bharti Airtel, Allcargo Logistics and Serum Institute of India were some of the major investors in foreign shores.
5. CPI inflation, IIP data to be released today: Also there is seen reaction on the expectations for CPI inflation and IIP data for December month that is due post market hours today. CPI inflation for January is estimated to remain flattish at 7.32%, largely steady in comparison to January's CPI figure. Also, on a year-on-year basis, the factory output for December month is seen to be steady at 1.8%.
6. Global markets: As there were reported lesser number of new coronavirus cases, Asian markets climbed higher. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.31%. Shares in China however fell 0.12% while Hang Seng climbed 0.57% and Nikkei index inched higher by 0.6%.