Stock markets mark highest close in nearly two weeks

The Indian equities markets on Wednesday marked their highest close in nearly two weeks, led by gains in software exporters such as Infosys, as investors seeking bargains bought into beaten down stocks.

The BSE Sensex ended up 0.54 per cent, while the Nifty rose 0.6 per cent, marking their highest close since July 23.

A day after it lost over 115 points in the wake of the central bank deciding to maintain status quo on key lending rates, a barometer index of the equity markets gained over 151.15 points at close on Wednesday. The Sensex, which opened at 28,138.04 points, closed at 28,223.08 points, up 0.54 per cent from the previous day's close at 28,071.93 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed in the green. It closed 51.05 points or 0.60 per cent up at 8,567.95 points.

According to analysts, bargain hunting was observed in the market after Tuesday's fall.

"There was bargain hunting. Investors were bullish about the dovish language used by the RBI which indicated higher prospects of an out-of-turn rate cut," Anand James, co-head, technical research desk, Geojit BNP Paribas, said.

"The language used by the RBI on the Indian economic growth, oil prices, monsoon, inflation and the US rate hike gave positive bias to the markets."

James pointed out that the bank's announcements of changing the cap on bond investment limit from being dollar-linked to rupee-denominated, segregation of the bond market and its engagements with the government over the new financial code also boosted the markets.

"There were also positive triggers coming in from stable European and Chinese markets, falling commodity prices and healthy monsoon performance," James added.

Sector-wise, healthy buying was observed in automobile, healthcare, information technology (IT), fast moving consumer goods (FMCG) and capital goods sectors.