Market logged healthy gains on Wednesday amid mixed global cues. Sensex closed 437 points, or 0.95 per cent, higher at 46,444.18 and Nifty settled 135 points, or 1 per cent, higher at 13,601.10.
Mid and smallcaps outperformed large-caps. BSE Midcap and Smallcap indices rose 2.40 per cent and 2.65 per cent higher, respectively.
IT stocks were back in focus with the Nifty IT index hitting a fresh 52-week high. Hindustan Unilever, Infosys, and Mahindra & Mahindra were the top Sensex gainers.
Only three stocks ended with losses, these were Titan, Power Grid and NTPC. Broader markets outperformed benchmark indices. Nifty Midcap 50 index surged 3.04% while Nifty Midcap 50 index was up 2.91per cent. Volatility slipped yet again, dropping 6.83 per cent to end at 20.48.
European shares rose on Wednesday as a report that a Brexit trade deal could be struck later in the day cheered investors amid concerns over the passage of a much-awaited US pandemic aid bill.
In Asia, Japan's Nikkei ended 0.33 per cent higher while South Korea's Kospi added nearly 1 per cent. Hong Kong's Hang Seng closed 0.8 per cent higher.
According to Binod Modi, Head-Strategy at Reliance Securities, domestic equities recovered sharply from early losses mainly on positive global cues and sharp rebound in IT, PSU banks and pharma.
"Stimulus bill in the US continued to offer support to emerging markets including India. However, emerging risk pertaining to new coronavirus strain made investors focus back on defensive sectors including IT, Pharma and FMCG," he noted.
While new imposed economic restrictions in various countries and threat of new coronavirus strain to other nations weigh on investors' sentiments, he said India still appears to be better placed given consistent reduction in new coronavirus cases and improvement in recovery rates.
(with PTI inputs)