Realty stocks such as DLF, Unitech and Sobha outperformed benchmark indices BSE Sensex and NSE Nifty 50 on Wednesday that saw markets remaining buoyant on account of the Narendra Modi government approving the recommendations of the 7th Central Pay Commission (CPC) and global cues.
The Nifty Realty index gained 3 percent while the BSE Realty rose 3.15 percent.
Unitech shares were up 8.55 percen,t DLF gained 7.8 percent and HDIL edged 2.90 percent higher.
The BSE Sensex ended with a gain of 216 points at 26,740 while the NSE Nifty 50 ended 76 points higher at 8,204.
Hero Motocorp, Tata Motors, NTPC and Tata Steel were leading the Sensex rally on the Bombay Stock Exchange on Wednesday, tracking Asian equities that rose on the back of gains registered on European and U.S. stock markets on Tuesday.
The Sensex was up 117 points at 26,642 at around 12.03 p.m., while the NSE Nifty 50 gained 40 points and was trading at 8,168.
"US markets closed more than 1.5% up yesterday, lifted by gains in oil prices, as investors looked for bargains post the Brexit sell-off. Analysts also pointed to improvement in sentiment after initial fears of significant negative spillover from the U.K. vote to leave the European Union. Energy gained over 2.6% and financials closed nearly 2.5% higher to lead all S&P sectors higher," brokerage Angel Broking said in a note on Wednesday.
The benchmark index on the London Stock Exchange also rebounded, with specific stocks gaining after being hit in the aftermath of Brexit.
"Recovery at FTSE was seen mostly across sectors that had been hit the most in last 2 trading sessions, i.e. banks, property & airline stocks," Angel Broking said.
The Indian rupee opened with a gain of 17 paise at 67.78 to the U.S. dollar from its previous close of 67.95. The gain was in tandem with the bullish sentiment on the stock exchanges.
"The intra-day range is seen between 67.50-68.00 levels," IFA Global said in a note.
In related news, the Narendra Modi government cleared the recommendations of the 7th Central Pay Commission (CPC), paving the way for a boost to consumption. This is widely seen as giving a fillip to the economy. Companies in the real estate, auto and FMCG space are expected to benefit the most from the hike in salaries and allowances poised to benefit about 1 crore employees and pensioners.
Republished at 5.05 p.m. with additional details.