The two key equity benchmarks, Sensex and Nifty, on Wednesday closed in the green following buying in heavyweights such as Reliance Industries, HDFC Bank, L&T, Infosys, Bharti Airtel, TCS, HDFC, and Axis Bank amid mixed global cues. The Reserve Bank's rate-setting monetary policy panel began deliberations on Tuesday and the decision would be announced on June 8.
The S&P BSE Sensex reclaimed the 63,000-mark in the intra-day trade, hitting a high of 63,196, before settling at 63,143, up 350 points. On the other hand, the Nifty50, too, inched towards the 18,750-mark during the day before shutting shop at 18,726, up 127 points.
On the 30-share Sensex platform, Nestle, Tata Steel, Tata Motors, Airtel, L&T, PowerGrid, TCS were among the lead gainers. On the flipside, Kotak Bank, Bajaj Finance, M&M, ICICI Bank, and Maruti were the losers.
In the broader markets, the BSE MidCap and SmallCap indices advanced over 1 per cent each.
All the sectoral indices ended in the green with capital goods, metal, oil & gas, FMCG, power, realty up 1 per cent each.
In the previous session on Tuesday, the S&P BSE Sensex ended 5 points higher at 62,793. On the other hand, the Nifty50 saw gains of 5 points at 18,599.
In Asian markets, Seoul, Shanghai, and Hong Kong ended in the green, while Tokyo settled lower. Equity markets in Europe were trading on a mixed note. The US markets ended in positive territory on Tuesday.
"Investors are becoming more optimistic due to the anticipation of a positive revision in the RBI’s inflation forecast during the ongoing MPC meeting. It is expected that the RBI will maintain its pause on rate hikes, considering the significant improvement in inflation, which has now come within the RBI's comfort zone. Furthermore, the participation of FIIs as net buyers, after a brief halt, contributed to today's market rally, particularly driven by mid-and small-cap stocks," said Vinod Nair, Head of Research at Geojit Financial Services.
Global oil benchmark Brent crude climbed 0.10 per cent to $76.45 a barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 385.71 crore on Tuesday, according to exchange data.
Meanwhile, the rupee gained 5 paise to settle at 82.55 against the US dollar on foreign fund inflows and risk-on sentiments ahead of the Reserve Bank of India's monetary policy decision on Thursday. At the interbank foreign exchange market, the local unit opened at 82.56 against the US dollar and settled at 82.55 (provisional), up 5 paise over its previous close.
During the day, the domestic unit witnessed an intra-day high of 82.46 and a low of 82.57. On Tuesday, the rupee closed at 82.60 against the US currency.