The benchmark indices surged by over a per cent for the third day in a row, on Wednesday, led by strong buying interest in banking and financial stocks. The BSE Sensex ended the session at 49,733.45, higher by 789.70 points or 1.61 per cent and the NSE Nifty closed at 14,864.55, up 211.50 points or 1.44 per cent. The broader markets also witnessed buying interest, the BS E Midcap index rose 0.9 per cent and BSE Smallcap index advanced 0.7 per cent.
Strong quarterly earnings by financial and banking companies have propelled the markets higher, according to analysts.
Both the indexes had seen a sell-off in the past couple of weeks as investors fretted over the economic impact from a furious surge in COVID-19 cases and deaths. The markets have, however, rebounded more than 3 per cent thus far this week as they seem to have factored in the worse on the Covid front.
Investors have also turned their attention to the March-quarter earnings season, with key blue-chip companies such as consumer giant Hindustan Unilever and conglomerate Reliance Industries set to report their results later this week.