Mumbai, Mar 5 (PTI) Benchmark BSE Sensex surged by 740 points while Nifty snapped its 10-day losing streak on Wednesday following value buying in utilities and power shares and a strong trend in global markets.

The 30-share BSE Sensex surged by 740.30 points or 1.01 per cent to close at 73,730.23. The index jumped 943.87 points or 1.29 per cent to hit an intra-day high of 73,933.80.

Cutting short its record 10-day falling streak, the broader Nifty of NSE rebounded by 254.65 points or 1.15 per cent to settle at 22,337.30. During the day, it appreciated by 312.25 points or 1.41 per cent to a high of 22,394.90.

Broader markets also closed higher with the BSE smallcap gauge climbing 2.80 per cent and midcap index advancing 2.66 per cent.

The market capitalisation of BSE-listed firms appreciated by Rs 7,97,247.7 crore to Rs 3,93,04,041.75 crore (USD 4.51 trillion).

From the Sensex pack, Adani Ports, Tata Steel, Power Grid, Mahindra & Mahindra, NTPC, Tech Mahindra, Tata Motors, ITC, Nestle India, HCL Technologies, Bharti Airtel, State Bank of India, Asian Paints and Kotak Mahindra Bank were the gainers.

Bajaj Finance, IndusInd Bank, HDFC Bank, and Zomato were the laggards.

"Strong global market cues led the recovery in domestic indices as talks that the Trump administration could reverse some tariffs amidst the ongoing global trade tensions buoyed sentiment," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Also, local factors such as an increase in the February PMI index also boosted the sentiment in the markets, Tapse said.

India's services sector activity witnessed a sharp uptick in February boosted by improving domestic and international demand, which resulted in a quicker expansion in output and a substantial increase in employment, a monthly survey said on Wednesday.

The seasonally adjusted HSBC India Services PMI Business Activity Index rose from January's 26-month low of 56.5 to 59.0 in February, indicating a sharp rate of expansion.

"India's services business activity index rose to 59.0 in February 2025, up considerably from January's 26-month low of 56.5. Global demand, which grew at its fastest pace in six months according to the new export business index, played a major role in driving output growth for India’s services sector," said Pranjul Bhandari, Chief India Economist at HSBC.

All the sectoral BSE indices ended higher, with Utilities surging 4.40 per cent, Power by 3.67 per cent, Services by 3.64 per cent, metal by 3.52 per cent, Telecommunication by 3.36 per cent, Commodities by 2.88 per cent and Oil & Gas by 2.46 per cent.

"Emerging markets, including India, witnessed a relief rally, supported by a weakening US dollar. This upward momentum occurred despite the imposition of US tariffs on Mexico, Canada, and China, as well as the looming threat of retaliatory measures," Vinod Nair, Head of Research, Geojit Financial Services, said.

Nair stated that "the long-term consequences of the ongoing trade conflict remain uncertain, elevated US inflation in the near term could reduce the likelihood of an interest rate cut".

Domestically, broad-based buying was observed across sectors such as Auto, Metals, and IT, driven by bargain-hunting opportunities. However, the sustainability of this recovery remains uncertain amid escalating global trade tensions and their potential long-term economic ramifications, he added.

As many as 3,247 stocks advanced while 768 declined and 86 remain unchanged on the BSE.

According to Religare Broking's SVP, Research Ajit Mishra, markets saw a much-needed rebound, gaining over a percent amid mixed cues. The session started on a positive note, driven by strength in select heavyweights, which gradually lifted sentiment across broader markets.

On the global front, President Donald Trump launched a trade war against America's three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China.

Later in the day, Commerce Secretary Howard Lutnick said the US would likely meet Canada and Mexico “in the middle,” with an announcement coming as soon as Wednesday. Lutnick told a news channel that the tariffs would not be paused, but that Trump would reach a compromise, as per media reports.

Trump also criticised the high tariffs charged by India and other countries including China, calling it "very unfair" and announcing reciprocal tariffs will kick in from next month.

In Asian markets, Tokyo, Shanghai, Hong Kong and Seoul closed higher. European markets were trading in the positive zone. Wall Street ended lower on Tuesday.

Global oil benchmark Brent crude decreased 0.49 per cent to USD 70.69 a barrel.

On the other hand, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,405.82 crore on Tuesday, according to exchange data. PTI HG MR