Snapping a three-day losing streak, markets today closed higher by a moderate 36 points on institutional buying support in blue-chip IT stocks amid positive cues from European bourses.
In lacklustre activities, the benchmark Sensex on the Bombay Stock Exchange moved erratically in a narrow range before concluding the day at 16,912.77, a gain of 35.61 points or 0.21 per cent from its previous close.
The 30-share index had lost over 300 points in 3 days of sustained selling. Even a promising 10.3 per cent growth in industrial production in October failed to enthuse markets.
Investors also discarded merchandise exports reversing 13-month fall to post over 18 per cent growth in November, which augurs well for the economy.
“Market is trying to find support at the current levels.
Today’s bounce back was more of a counter rally after a big fall yesterday as the world markets have not dropped so much,” said SMC Global Vice President Rajesh Jain.
Good buying support in IT counters saved the day blushes.
Brokers said software exporters were untouched by the last 3 days of hectic selling. They said the outlook for IT companies is bullish as the western markers are recovering and spurt in outsourcing activities is expected which could drastically improve their bottom lines. Indian IT companies earn a big chunk of their revenues revenues from the US.
All the 3 big software exporters ended with gains. Wipro was the biggest gainer among the three at 1.96 per cent.
Country’s biggest software exporter TCS was up 1.84 per cent, while Infosys jumped 1.53 per cent.