Benchmark indices ended the day sharply higher led by strong global cues, particularly from Europe. The rally came following A World Health Organization (WHO) press conference at which the agency said that the Corona outbreak did not constitute a global public health emergency.
The Sensex ended the day with gains of 226 points, while the Nifty jumped 68 points in trade. Leading the set of gainers was Yes Bank whose shares jumped 13 per cent in two days, following comments by SBI Chairman, that the bank would not be allowed to fail.
"Yes Bank is a significant player in the market with an almost $40 billion balance sheet," State Bank of India, Chairman Rajnish Kumar told Bloomberg Television in Davos. "I have a feeling that it will not be allowed to fail," he added.
Private sector banks, whose shares saw some selling pressure in the earlier part of the week, saw some buying support in trade. Among the gainers was Kotak Bank and HDFC Bank.
Shares of AU Small Finance Bank rallied for the second consecutive trading day to hit a new record high Rs 1040. The company reported a near 100 per cent growth in net profits.
Meanwhile, most European stocks were trading sharply higher with gains of nearly 1 to 1.4 per cent.