The S-P BSE Sensex and NSE Nifty 50 indexes extended gains in last hour of trade led by gains in banking, auto and metal shares.
Investors cheered amendments made to the Insolvency and Bankruptcy Code (IBC) to ease the insolvency resolution process and promote ease of doing business by the Union Cabinet on Wednesday, analysts said.
The Sensex rose as much as 300 points and the Nifty 50 index reclaimed important level of 12,000.As of 2:53 pm, the Sensex traded 295 points or 0.7 per cent higher at 40,708 and the Nifty was up 0.8 per cent or 93 points at 12,004.The development comes at a time the government seeks to strengthen the country's financial sector, marred by huge bad assets and bank frauds, to support economic growth.
The IBC (Second Amendment) Bill, 2019 is likely to be introduced in the current session of the Parliament.
This marks a fourth amendment to the government's flagship Insolvency and Bankruptcy Code which came into force in 2016.Union cabinet also approved easier lending rules for shadow banks, the government said on Wednesday, to help them get more access to funds.Sixteen of 19 sector gauges compiled by BSE were trading higher led by the S-P BSE Metal index's 2.7 per cent gain.
S-P BSE Auto, Bankex, Capital Goods, power, Utilites, Industrials and Basic Materials sector gauges also rose between 11.5 per cent each.On the other hand, S-P BSE Information Technology index was top loser, down 0.4 per cent.Mid- and small-cap shares were also witnessing buying interest as the S-P BSE MidCap index rose 0.8 per cent and the S-P BSE SmallCap index climbed 0.6 per cent.Yes Bank was top gainer in the Nifty 50 basket of shares, the stock rose 8 per cent to Rs 46.25.
Tata Motors, Vedanta, Tata Steel, Power Grid, Hindalco, JSW Steel and State Bank of India were also among the gainers.On the flipside, Infosys, ONGC, Bhartia Infratel, HCL Technologies, Wipro, Bharti Airtel, UltraTech Cement and Hindustan Unilever were among the losers.