Key equity benchmarks ended with robust gains on Wednesday, due to bargain hunting. The rally were supported by firmness in banking and financial shares. The Nifty crossed its 200-day simple moving average placed at 11,266.70.

The barometer index, the BSE Sensex, rose 645.97 points or 1.72% to 38,177.95, as per the provisional closing data. The Nifty 50 index rose 186.90 points or 1.68% to 11,313.30, as per the provisional closing data.

Investors lapped up shares after key indices tumbled in past six trading sessions. The Sensex shed 3.74% while the Nifty tumbled 3.86% in six straight trading sessions till Monday, 7 October 2019, from recent closing high on 26 September 2019. Domestic stock market was shut on Tuesday, 8 October 2019 on account of Dussehra.

Sentiment also improved after the government on Wednesday hiked the dearness allowance (DA) by 5%. Union minister Prakash Javadekar said that the DA has been increased from 12% to 17%. The move will benefit at least 50 lakh government employees and 65 lakh pensioners. The hike will be effective from July. The cost to the exchequer will be Rs 16,000 crore.

The market breadth turned positive in late trade. On the BSE, 1271 shares rose and 1248 shares fell. A total of 179 shares remain unchanged. In Nifty 50 index, the market breadth was positive with 38 stocks advancing and 12 stocks declining.

The S&P BSE Small-Cap index rose 0.66%. The S&P BSE Mid-Cap index was up 1.38%.

The Nifty 50 index opened higher, but reversed gains in early trade. The index hit fresh intraday low in morning trade. The index took off from the day's low as buying emerged at lower levels. The Nifty advanced as the session progressed and crossed its 200-day simple moving average in afternoon trade.

Index pivotal, TCS (down 1.6%) will announce its Q2 results tomorrow. IT major, Infosys (down 0.93%) will announce its Q2 results on Friday, 11 October 2019.

The Nifty Bank index was in spotlight for most part of the session. The index rallied 1,000 points, or 3.67%. The index posted gains for second consecutive session.

Private sector banks were in demand. IndusInd Bank (up 5.4%), ICICI Bank (up 5.21%), Kotak Mahindra Bank (up 3.97%), HDFC Bank (up 3.36%), Axis Bank (up 2.22%), RBL Bank (up 1.9%) and Federal Bank (up 1.12%) advanced.

PSU banks were trading higher. Bank of Baroda (up 4.48%), Bank of India (up 3.62%), Union Bank of India (up 2.92%), Canara Bank (up 2.65%), UCO Bank (up 2.56%), Punjab National Bank (up 2.1%), Punjab & Sind Bank (up 0.85%), IDBI Bank (up 0.84%), Corporation Bank (up 0.71%) and Syndicate Bank (up 0.59%) edged higher.

State Bank of India (SBI) advanced 3.21% on reports that SBI slashed its MCLR by 10 basis points, bringing it down to 8.05% from 8.15% with effect from 10 October 2019. SBI is set to reduce savings account deposit rate from 3.5% to 3.25% from 1 November 2019. For 1-2 year deposits, SBI cut the retain term deposit and bulk deposit rate by 10-30 basis points effective from 10 October 2019, on account of tackling inadequate liquidity.

The Nifty Pharma index was up 1.08% at 7,225.90, ending its 6 day losing streak. The index shed 9.02% in 6 trading days from its previous closing high of 7857.30 on 26 September 2019.

Cipla (up 3.6%), Dr Reddy's Laboratories (up 1.97%), GlaxoSmithKline Pharmaceuticals (up 1.42%) and Sun Pharmaceuticals (up 1%) advanced from the pharma pack.

Glenmark Pharmaceuticals rose 1.29% after the company announced that it has been granted a tentative approval by the United States Food & Drug Administration (USFDA) for Dimethyl Fumarate delayed‐release capsules.

Aurobindo Pharma rose 3.38% to Rs 469.40 after the company clarified that the United States Food and Drug Administration (USFDA) conducted a current good manufacturing practice (cGMP) inspection at Unit 7 manufacturing facility from September 19-27, 2019. The inspection ended with 7 observations. The company said that none of the observations are related to data integrity. The company is confident of addressing these issues within the stipulated timeline.

Cadila Healthcare surged 3.57% to Rs 236.35 after the company received a final approval from the USFDA for Colesevelam Hydrochloride Tablets. The drug is used to lower cholesterol in people with high levels of cholesterol in the blood. Lowering cholesterol decreases the risk of heart disease and helps prevent strokes and heart attacks. Tablets will be manufactured at the group's formulations manufacturing facility at SEZ, Ahmedabad.

Lupin edged 1.94% higher after the pharmaceutical company received Good Manufacturing Practice (GMP) Certificate from the Pharmaceutical and Medical Devices Agency (PMDA), Japan for the company's Mandideep API facility (Unit II). The GMP Certificate was issued after an inspection was conducted by PMDA from 14 May 2019 to 17 May 2019. The inspection was concluded with no critical or major observations.

Adani Green Energy (up 4.63%), Affle (India) (up 11.87%), Berger Paints India (up 3.53%), Indiamart Intermesh (up 15.89%), Religare Enterprises (up 4.98%), Siemens (up 4.57%) and Whirlpool of India (up 2.98%) hit 52-week highs.

Titan Company lost 2.32% after the company in its Q2 update said the jewellery division witnessed a sharp fall in sales after a sudden surge in gold prices dented the consumer demand from mid-June. While retail sales declined in July, between August & September the retail growth was 15% YOY over the same period in the previous financial year possible due to an enhanced level of promotions & schemes. Weak consumer sentiments led to moderation in growth rate of the watches division to 7% for the quarter and 13% for the half year. The eye wear division witnessed robust growth of 28% for the quarter, partly aided by the participation in Essilor's offer of 'Buy One Get One'.

Tata Motors rose 2.89%. Tata Motors said that Jaguar Land Rover (JLR) retail sales for the quarter ending 30 September 2019 were 128,953 vehicles, down 0.7% compared to the same period a year ago. Jaguar retail sales for the quarter were 37,323 vehicles, down 11% year-on-year and Land Rover retails were 91 ,630 vehicles, up 4.2% year-on-year. The announcement was made after market hours on Monday, 7 October 2019.

Meanwhile, India has slipped 10 places to the 68th rank on an annual global competitiveness index, according to a latest update. The annual Global Competitiveness Index is compiled by Geneva-based World Economic Forum (WEF). The WEF said that India ranks high in terms of macroeconomic stability and market size though its financial sector is relatively deep and stable despite the high delinquency rate, which contributes to weakening the soundness of its banking system.

Further, the International Monetary Fund (IMF)'s managing director, Kristalina Georgieva, said that the global economy is now in a synchronized slowdown. In some of the largest emerging market economies, such as India and Brazil, the slowdown is even more pronounced this year, she noted. Georgieva pointed out that the widespread deceleration means that growth this year will fall to its lowest rate since the beginning of the decade. She said the World Economic Outlook to be released next week will show downward revisions for 2019 and 2020.

Overseas, European markets advanced while most Asian markets declined as the United States and China's ever-expanding dispute over trade and foreign policy showed little sign of coming to an end.

US stocks ended down sharply on Tuesday as news that the United States has imposed visa restrictions on Chinese officials overshadowed comments by Federal Reserve Chairman Jerome Powell suggesting openness to further interest rate cuts.

Meanwhile, high-level US-China trade negotiations will resume this week in Washington, the White House announced on 7 October 2019, a hopeful sign after a summer of deteriorating relations. Beijing's top trade envoy Liu He will meet with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin beginning on Thursday, the White House said in a statement.

Lower-level talks have been underway since last month. The talks will focus on key areas where the Americans have made far reaching demands since last year: intellectual property rights, the forced transfer of proprietary technologies, agriculture and enforcement, the statement said.