Sensex surges over 2,000 points, Nifty reclaims 22,500 as PM Modi set to return to power

Indian equity benchmarks staged a strong rebound on Wednesday a day after witnessing worst session in over four years as Prime Minister Narendra Modi-led National Democratic Alliance (NDA) was set to return to power for third time. Sensex rose as much as 2,125 points and Nifty 50 index moved above its important psychological level of 22,500

As of 2:35 pm, Sensex was up 2.93 per cent or 2,118 points at 74,196 and Nifty 50 index climbed 669 points to 22,553.

NDA leers are arriving in New Delhi to discuss government formation under leership of PM Modi and third NDA government is likely to be sworn in on June 8.

A major ally NDA reaffirmed ir support for him on Wednesday and was poised to participate in discussions aimed at forging a coalition government, bolstering PM Modi's prospects for securing a third consecutive term in office.

Telugu Desam Party (TDP) declared its stefast allegiance to PM Modi and his party. "We remain committed to NDA. I will be attending today's meeting in Delhi," stated Chandrababu Naidu, leer of TDP, dressing reporters.

With NDA securing 293 seats in 543-member lower house of parliament, surpassing required 272 threshold for government formation, alliance's position appears solidified.

Meanwhile, buying was visible across sectors as all major sector gauges compiled by National Stock Exchange were tring higher led by Nifty Private Bank index's 4.8 per cent gain. Nifty Bank, Auto, Financial Services, FMCG, Metal, Pharma and Healthcare indices also rose between 3.5-4.5 per cent.

Mid- and small-cap shares were also witnessing buying interest as Nifty Midcap 100 index rose 4.12 per cent and Nifty Smallcap 100 index vanced 3.85 per cent.

IndusInd Bank was top Nifty gainer, stock rose 7.3 per cent to Rs 1,492. Mahindra & Mahindra, Shriram Finance, Hero MotoCorp, ani Ports, Tata Steel, Bajaj Finance, ONGC, Hindalco, Divi's labs and Kotak Mahindra Bank also rose between 4-6 per cent.

On flipside, Bharat Petroleum and Larsen & Toubro were only losers in Nifty 50 basket of shares.

overall market breth was extremely positive as 2,454 shares were vancing while 1,294 were declining on BSE.