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Bulls tightened their grip on Dalal Street on Wednesday with frontline gauges ended near intraday high levels, reclaiming their crucial 49,700 (Sensex) and 14,850 (Nifty) levels. Indian equity benchmarks made a gap-up opening and gained strength to strength throughout the day as traders opted to buy risky assets. Sentiments remained optimistic with report that as the registration for the next phase of Covid-19 vaccinations for all above 18 years of age opens, the health ministry shared data to counter claims that vaccines in several states, including Maharashtra, were out of stock. The data showed that 150 million doses had been given to the states so far, of which 10 million were still available with them. Traders took note of the commerce ministry’s statement that the country's exports of organic food products rose by 51 percent year-on-year to $1 billion (Rs 7,078 crore) in 2020-21. 

Markets extended rally after head of an India-centric American business advocacy group has said that America's corporate sector has stepped up its efforts to help India in its battle against the COVID-19 pandemic and ensure that lives are saved. Sentiments remain energized with Union Health Minister Harsh Vardhan’s statement that India is better prepared mentally and physically this year with more experience to beat the COVID-19 pandemic as compared to 2020. Some support also came after the Cabinet has approved the signing and ratification of an Agreement between the Government of Republic of India and the Government of the United Kingdom of Great Britain and Northern Ireland on Customs Cooperation and Mutual Administrative Assistance in Customs Matters. Meanwhile, the Asian Development Bank (ADB) in its flagship Asian Development Outlook (ADO) 2021 has stated that India’s economy is likely to grow at 11 per cent in the current fiscal year (FY) 2021-2022, which ends on March 31, 2022. However, it cautioned that the surge in COVID-19 cases may put the country's economic recovery at risk. It added that for FY 2022-2023, India's GDP is expected to expand at 7 per cent.

Positive opening in European counters too aided sentiments ahead of the conclusion of the latest Federal Reserve meeting.  Asian markets ended mostly lower on Tuesday, after Hong Kong's merchandise exports grew at a softer pace in March. The data from the Census and Statistics Department showed that exports rose 26.4 percent year-on-year in March, after a 30.4 percent increase in February. Imports gained 21.7 percent annually in March, following a 17.6 percent increase in the previous month. The trade deficit widened to HK$26.967 billion in March from HK$34.707 billion in the same month last year. In February, the deficit was HK$14.699 billion.

Back home, credit rating agency S&P Global in its latest report has said that the second wave of COVID-19 infections in India could impede the country's economic recovery and expose other nations to further waves of outbreaks. On the sectoral front, telecom stocks remained in focus as domestic credit rating agency Crisil's research wing pointed out that there is a close contest between the top two telcos, when one goes by active subscriber base with Jio's share at 33.7 per cent and Airtel's at 33.6 per cent.

Finally, the BSE Sensex surged 789.70 points or 1.61% to 49,733.84, while the CNX Nifty was up by 211.40 points or 1.44% to 14,864.55.

The BSE Sensex touched high and low of 49,801.48 and 49,066.64 respectively and there 24 stocks advancing against 6 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index jumped 0.99%, while Small cap index was up by 0.71%.

The top gaining sectoral indices on the BSE were Bankex up by 3.00%, Auto up by 1.78%, Telecom up by 1.51%, Consumer Discretionary Goods & Services up by 1.42% and PSU up by 1.36%, while Realty down by 0.49%, Metal down by 0.29%, Capital Goods down by 0.10% and Healthcare down by 0.10% were the few losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 8.32%, Indusind Bank up by 5.08%, Bajaj Finserv up by 4.06%, ICICI Bank up by 3.72% and Kotak Mahindra Bank up by 3.52%. On the flip side, Nestle down by 0.96%, HCL Tech down by 0.55%, Larsen & Toubro down by 0.38%, TCS down by 0.25% and Dr. Reddys Lab down by 0.24% were the top losers.

Meanwhile, Domestic rating agency, Brickwork Ratings in its latest report has revised downwards the country’s FY22 GDP growth projection to 9 per cent from an earlier estimate of 11 per cent. It said that the deadly second wave of COVID-19 has brought an abrupt halt to the country’s nascent economic recovery from the pandemic.

It said ‘the outlook for growth continues to remain positive mainly due to the low base, and we revise FY22 GDP growth to 9 per cent from the earlier estimates of 11 per cent.’ It stated until the virus spreads are contained, and a substantial proportion of the population has been vaccinated, the sectors that are impacted by social distancing norms and those adversely affected by supply disruptions, labour shortage and demand reduction will continue to trail and may take longer to return to sustained growth path.

It mentioned the revival in sectors that fall under discretionary spending may also be further delayed due to the second wave. Besides, it said the Indian economy entered the calendar year 2021 with bright hopes of achieving double-digit growth in FY22 backed by dramatic decline in new COVID infections, in addition to progress in developing an effective vaccine for COVID-19.

The CNX Nifty traded in a range of 14,694.95 and 14,890.25 and there were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 8.55%, Eicher Motors up by 5.05%, Indusind Bank up by 5.04%, Bajaj Finserv up by 3.94% and ICICI Bank up by 3.77%. On the flip side, Britannia Industries down by 1.76%, Hindalco down by 1.00%, HDFC Life Insurance down by 0.91%, Nestle down by 0.87% and BPCL down by 0.68% were the top losers.

European markets were trading higher, UK’s FTSE 100 increased 13.13 points or 0.19% to 6,958.10, France’s CAC increased 18.31 points or 0.29% to 6,292.07 and Germany’s DAX was up by 29.63 points or 0.19% to 15,278.90.

Asian markets ended mostly higher on Wednesday despite investors awaited the results of the US Federal Open Market Committee (FOMC) meeting later in the day for further insight into the bank's thinking on inflation and bond purchases. Investors shrugged off official data showing that Hong Kong's merchandise exports grew at a softer pace in March. The data from the Census and Statistics Department showed that exports rose 26.4 percent year-on-year in March, after a 30.4 percent increase in February. Imports gained 21.7 percent annually in March, following a 17.6 percent increase in the previous month. The trade deficit widened to HK$26.967 billion in March from HK$34.707 billion in the same month last year. In February, the deficit was HK$14.699 billion. Besides, Japanese market ended higher after data showed the country's retail sales rose 5.2 percent year-on-year in March, representing the fastest pace of growth in five months.

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