Closing Bell: Sensex gains 540 pts, Nifty ends near 22,000; smallcaps, midcaps outperform

All the sectoral indices ended the session in the green with PSEs, metals, capital goods, pharma, realty,and PSU banks recording over 2 percent gains. BSE Midcap and smallcap indices also surged 2 percent each.

Benchmark indices Nifty and Sensex snapped out of the recent slump to end firmly in the green on March 21 as market participants cheered the Fed's dovish commentary and hints of three rate cuts this year, starting June.

All sectoral indices were trading with firm gains, reflecting a broad-based optimism among investors. The broader markets also rebounded with the BSE Midcap and the Small-cap indices gaining nearly 2 percent.

The Sensex closed 539.50 points or 0.75 percent higher at 72,641.19, and the Nifty ended 175.70 points or 0.80 percent up at 22,014.80. About 2,554 shares advanced, 817 declined, and 74 were unchanged

The Nifty PSE index, which tracks the performance of public sector undertakings, jumped over 3 percent with all 20 constituents trading in the green, led by power financiers.

Stocks of oil marketing companies (OMCs) such as BPCL, IOC, and HPCL also extended their winning streak for the second straight day.

With no change in interest rates and the US Fed sticking to guided three rate cuts this year, the market has breathed a sigh of relief, which can be seen from the movement in Nifty50 and Sensex, said analysts.

The earnings growth for the listed universe continues to remain strong, and Indian equities remain preferred investment destinations for domestic and foreign portfolio investors, according to Master.

Source: Money Control