Indian shares recovered to end sharply higher on Wednesday after the government stressed in a statement that the Reserve Bank of India has autonomy. The statement helped allayed investor concerns about growing rift between the monetary policy regulator and the government.

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The Sensex ended more than 550 points higher at 34,442, while the Nifty ended 1.85 percent higher at 10,386. Benchmark indexes found support from financials, particularly HDFC and Indiabulls Housing Finance which surged nearly 9 percent. IT stocks led by Infosys and Tata Consultancy Services also helped. Broader markets also ended higher with the benchmark Nifty MidCap rising more than 1.5 percent.

(Market update as of 4pm)

Market recovers after centre issues statement on rift with RBI; Tech Mahindra gains post results

The Indian market recovered from the day's lows on Wednesday noon after the centre issued a statement on the ongoing rift with the Reserve Bank of India.

The BSE Sensex climbed nearly 103 points to reclaim the 34,000 level and was trading at 34,004.23 at 1.15 pm. The Nifty also inched up towards the 10,250 level, rising 41 points to 10,239.85.

Broader markets surged higher, outperforming frontline indices with the Nifty MidCap trading up by 0.72 percent. As many as 20 sectors advanced with the Nifty IT leading the pack by moving 2.49 percent higher. The 23 declining sectors were led by BSE Metal, which slipped by 2.45 percent.

Tech Mahindra rose nearly 7 percent after posting a 27 percent year-on-year rise in net profit at Rs 1,064.33 crore for the quarter ended on September 30 2018. The IT stock was the top percentage gainer on the Nifty.

Other major gainers were HDFC, Indiabulls Housing Finance, HCL Technologies, Infosys, Sun Pharma, Axis Bank, InduInd Bank, rising by up to 4.35 percent.

The losers were Tata Steel, Coal India, Hindalco, Maruti Suzuki, Dr Reddy's Labs, Bharti Airtel and NTPC, falling by up to 4 percent.

The rupee traded at 73.97 against the US dollar at 1.22 pm. It had opened weaker at 73.92 against the US dollar after Tuesday's close at 73.67 against the greenback.

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First Published:Oct 31, 2018 2:02 PM IST