Sensex surges 321 points, Nifty reclaims 9900

Indian markets ended the trading session on Wednesday with robust gains owing to receding tension between the US and North Korea. Softening of military posturing between the two countries led to spurred buying activity.

Both the benchmark indices advanced over 1% as investors resumed risk appetite on positive leads from European markets ahead of the latest US Federal Reserve minutes and British unemployment data.

The 30-share Sensex gained 321.86 points, or 1.02%, to close at 31770.89 – its highest close since August 9 when it had ended at 31797.84.

The 50-share Nifty, on the other hand, went up 103.15 points, or 1.05%, ending at 9897.30.

Stocks of consumer-goods companies resumed centrestage on value-buying, recovering from recent losses that were sparked by goods and services tax (GST) concerns. Shares of FMCG companies staged a stellar performance with a gain of 2.49%.

Shares of Tata Global Beverages surged over 8% after the company said it will launch its premium natural mineral water brand ‘Himalayan’ in the US market.The stock of the company soared 8.17% to end at Rs 193.30 on BSE.

Stocks of companies like Tata Motors (3.57%), Cipla (3.54%), ITC (3.01%), HUL (3.00%) and Sun Pharma (2.69%), while the major losers were NTPC (1.05%), Asian Paints (0.94%), Power Grid (0.81%), Cipla (0.67%), Lupin (0.56%), among others, too emerged as gainers in the session.

Additionally, metal, auto, banking and healthcare stocks gave a buoyant performance.

Among BSE sectoral indices, FMCG index went up the most, rising 2.94%, followed by metal that ended up 1.72%, auto surging 1.62% and banking surging 1.26%.

However, the infrastructure index was down 0.18% in addition to capital goods that ended with losses of 0.13%.

However, infrastructure and capital goods lost their way and slumped.Tata Motors was the big gainer from the Sensex pack, up 3.57%. Cipla, ITC, Hindustan Unilever, Sun Pharma too ended with gains.

The rally is the single-biggest gain in more than a month. It was fuelled by domestic institutional investors who net bought shares worth Rs 1,619.17 crore, provisional data showed.

Foreign portfolio investors net sold shares worth Rs 1,638.83 crore on Monday.

Investors watched their step as CPI inflation jumped 2.36% in July, cutting down the chances of another interest rate cut by the Reserve Bank of India, while wholesale inflation rose sharply to 1.88% in July, the first rise in five month there is something.

The rupee plunged to a two-week low on worries over widening trade deficit by the end of this fiscal year while rebound in retail inflation pushed bond yields to one-month high on Wednesday. The currency pair ended at Rs 64.15/$1 compared to Rs 64.11/$1 at the close of the previous session.

In line with the overall trend, broader markets too demonstrated strength with robust demand given that the small-cap and mid-cap indices surged up to 1.31%, outsmarting th benchmarks.

Asian indices did not give a clear trend as a few ended with losses.Hong Kong’s Hang Seng ended higher, while Japan’s Nikkei and China’s Shanghai Composite Index traded under pressure, ending Wednesday’s session with losses.

European markets displayed strength with key indices ending higher. Frankfurt’s Dax Performance Index as well London’s FTSE, both withessed upsurge.