Indian Shares Extend Gains on Wednesday

The BSE Sensex extended early gains and closed 400 points higher at 61,045 on Wednesday, furthering the sharp gains from the prior session as the fresh influx of foreign capital lifted investors’ sentiment.

Foreign institutional investors purchased a net INR 2.1 billion worth of equities in the prior session, snapping 17 straight sessions of net selling position.

The metallurgical industry and banks led the gains in Mumbai, with Tata Steel adding 2.4% while HDFC Bank advanced nearly 2%.

On the other hand, auto manufacturers underperformed as investors continued to digest the impact that India’s windfall tax cut on domestically produced crude oil.