The Sensex surged 291 points to 36,264, while the Nifty jumped 77 points to 10,912. The market breadth was positive with 1,306 shares advancing, 246 shares declining, and 488 remaining unchanged.
Shares of Allahabad Bank, Corporation Bank, and Dhanlaxmi Bank rose 5-8% after RBI lifted restrictions imposed on the banks under RBI PCA framework.
Shares of TVS Motor advanced over 2% on the BSE after foreign brokerage firm Deutsche Bank upgraded its rating on the stock to hold, but slashed price target to Rs455 from Rs465 apiece.
The BSE Midcap index was trading 1.19% higher at 14,361, and BSE Smallcap index was trading at 13,370, up by 1.3%.
Sun Pharma, Yes Bank, Bajaj Auto, JSW Steel, and Axis Bank are trading higher, while Wipro, TCS, Infratel, GAIL, and HCL Tech are trading lower on the NSE.
Volatility index India VIX slipped 7.17% at 15.88.
The most active stocks are Yes Bank, Axis Bank, Reliance Industries, TCS, and Maruti.
On the economy front, India’s April-January fiscal deficit hit Rs7.7 lakh cr rupees ($108.36bn) or 121.5% of the budgeted target for the current fiscal year, government data showed on Tuesday.
The Indian rupee opened marginally higher on Wednesday against the US dollar on account of some selling in greenback from banks and exporters. Meanwhile, the dollar came under pressure after Federal Reserve Chairman Jerome Powell repeated that the US central bank would maintain patience on monetary policy, suggesting it was unlikely to raise interest rates anytime soon.