Indian equities close higher; Sensex soars 612 points, Nifty tops 21,725

The Sensex index surged 612.21 points higher to end the day at 71,752.11. Meanwhile, the Nifty 50 also showed strong gains, advancing 203.60 points or 0.95 percent to close at 21,725.70.

Shantanu Poswal
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Equity markets in India recorded gains on Wednesday ahead of the interim budget announcement and the US Federal Reserve interest rate decision, both key events for investors. 

The benchmark Sensex index rose over 0.86% to close above 71,752.11 recovering from early losses during the session. Similarly, the Nifty 50 index climbed 0.95% to end above 21,725.70

Market experts said expectations are modest from the interim budget due on February 1st even as healthy tax revenues raise hopes of a lower fiscal deficit target. Global markets were also awaiting cues from the outcome of the US Federal Reserve policy meeting. While Asian peers like Japan and Hong Kong ended lower, European indices were trading mixed.

Ups & downs of the Market

Buying in banking and energy stocks like HDFC Bank, Reliance Industries and State Bank of India aided the rise. However, shares of engineering major Larsen & Toubro fell over 4% after its earnings report for the December quarter. Overall, the markets saw a see-saw trend amid mixed global cues but buying on dips worked well.

Foreign investors had offloaded Indian equities worth nearly ₹2,000 crore on Tuesday but the domestic institutional buying provided support. 

Going ahead, analysts advise a selective approach in the markets while following a buy on declines strategy. The upcoming domestic and global events could induce volatility but India's growth outlook remains stable despite global headwinds.