Sensex soars 630 points as investors give thumbs-up to Shaktikanta Das' appointment as new RBI governor, Nifty reclaims 10,700-mark

Mumbai: Benchmark indices defied gravity for the second straight session on Wednesday as investors gave a thumbs-up to the prompt appointment of former bureaucrat Shaktikanta Das as the new RBI Governor.

The BSE Sensex zoomed 629.06 points, or 1.79 percent, to end at 35,779.07, while the broader NSE Nifty rallied 188.45 points, or 1.79 percent, to 10,737.60.

All the 30 Sensex stocks, as well as BSE sectoral indices, finished with gains, led by realty, auto, metal, capital goods and financial counters.

Representational image. Reuters

Representational image. Reuters

Major gainers in the Sensex pack were Hero Motocorp, which rallied 7.01 percent, followed by Bharti Airtel (6.69 percent), Yes Bank (5.30 percent), Adani Ports (4.90 percent), Tata Steel (3.75 percent) and Bajaj Auto (3.70 percent).

Analysts said the quick appointment of the new RBI governor and expectations of more steps to ease the liquidity situation bolstered trading sentiment.

Former economic affairs secretary Shaktikanta Das on Wednesday assumed charge as the 25th governor the RBI. He replaces Urjit Patel, who abruptly resigned amid a face-off with the government over issues related to governance and autonomy of the central bank.

On the appointment, SBI Chairman Rajnish Kumar said, "This will ensure continuity in monetary policy making and regulatory measures even as the global economy is passing through uncertain times. The financial markets will also significantly benefit from the appointment of newly appointed Governor given his rich prior experience in fiscal policies and trade. This will also ensure a convergence of domestic and external policies."

Meanwhile, foreign funds sold shares worth Rs 2,421.06 crore on a net basis Tuesday, while domestic institutional investors bought equities worth Rs 2,255.68 crore, provisional data showed.

Brent crude oil futures was trading 1.86 percent higher at $61.32 per barrel.

Elsewhere in Asia, Korea's Kospi rose 1.44 percent, Japan's Nikkei soared 2.15 percent, Hong Kong's Hang Seng surged 1.61 percent and Shanghai Composite Index inched up 0.31 percent.

In Europe, Frankfurt's DAX rose by 1.04 percent and Paris' CAC 40 jumped 1.57 percent in early deals. London's FTSE too soared 1.11 percent.

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Updated Date: Dec 12, 2018 17:19:53 IST

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