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Domestic stock markets rose sharply on Wednesday tracking a rally in global peers as investors' concerns somewhat eased on the US-China trade front after Washington delayed tariffs on some Chinese imports.
Domestic stock markets rose sharply on Wednesday tracking a rally in global peers as investors' concerns somewhat eased on the US-China trade front after Washington delayed tariffs on some Chinese imports.
The S&P BSE Sensex index gained as much as 438 points to 37,396 and the NSE Nifty 50 index reclaimed the 11,050 level. Gains in financial, metal and energy shares supported the surge.
 
Hopes of a stimulus package from the government to revive the economy also boosted the investor sentiment, according to analysts.
 
At 10:41 am, the Sensex traded 419.62 points - or 1.14 per cent - higher at 37,377.78, while the Nifty was up 113.60 points - or 1.04 per cent - at 11,039.45.
 
Top percentage gainers on the 50-scrip index at the time were UPL, Zee Entertainment, Vedanta, Tata Steel, Hindalco and Bajaj Finserv, trading between 3.04 per cent and 4.01 per cent higher.
 
Market breadth favoured gains with 1,057 stocks on the BSE trading higher and 756 struggling with losses. On the NSE, 930 stocks advanced while 704 declined.
 
HDFC, ICICI Bank and Reliance Industries contributed the most to the advances in Sensex.
 
The gains came a day after reports that the Ministry of Finance is working on a stimulus package for the industry to revive the economy.
 
News agency IANS quoted official sources as saying that the stimulus package by the government would not only aim to reduce the cost for the industry but would also lay out procedures that would further provide impetus to ease of doing business.
 
Government data on Tuesday showed that consumer inflation came in at 3.15 per cent in July, remaining below the Reserve Bank of India's medium-term target for the twelfth month in a row. That refuelled hopes of another rate cut by the central bank in its next bi-monthly review due in October.
 
Equities in other Asian markets joined a global equities surge on Wednesday, after Washington delayed tariffs on some Chinese imports.
 
Wall Street stocks soared overnight as US President Donald Trump backed off his September 1 deadline for 10 per cent tariffs on the remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods in the hopes of blunting their impact on US holiday sales.
 
The surge in US stocks lifted MSCI's broadest index of Asia-Pacific shares outside Japan by 0.9 per cent. The Shanghai Composite Index advanced 0.6 per cent while Hong Kong's Hang Seng, which has been hurt by disruptions from large anti-government protests, rose 0.5 per cent.
 
South Korea's KOSPI advanced 0.8 per cent and Japan's Nikkei rose 0.6 per cent.
 
The Sensex and Nifty had closed 1.66 per cent and 1.65 per cent lower respectively on Tuesday, hurt by a selloff across sectors barring energy shares.