The BSE benchmark Sensex on Wednesday snapped the 5-day falling streak and gained over 68 points to close at 18,090.62 on emergence of value buying in fundamentally strong stocks, led by Reliance Industries.
The Bombay Stock Exchange benchmark Sensex, which had lost 1,130 points in last five straight sessions, recovered by 68.40 points to 18,090.62 as the heaviest—weighted Reliance Industries climbed on hopes that rising crude prices would improve refining margins.
Similarly, the broad-based National Stock Exchange index Nifty spurted by 14.80 points to 5,432, as most beaten realty and refinery stocks rebound.
The gauge, among the worst performers globally so far this year, lost nearly 11 per cent in January. Yesterday, it dipped to its lowest level since August amid concerns that accelerating inflation will prompt further tightening in monetary policy, hitting growth and corporate profits.
Investors bought Indian equities today amid firm Asian trend and higher opening in European stock markets.
Reliance Industries, the largest company by market value, increased 2.88 per cent to Rs 921.40.
Tata Consultancy, the largest software exporter, rose 2.48 per cent to Rs 1,178.90, snapping a three—day losing streak as expansion in U.S. manufacturing boosted confidence in global economic recovery.
Growth in the U.S., the largest export market for Indian IT firms, prompted speculation that demand for software supplies will rise. U.S. and Europe are the largest markets for Indian IT companies.
The most beaten realty sector index gained the most by rising 2.40 per cent to 2,189.97 followed by oil and gas sector index by 1.85 per cent to 9,454.57. Tech index rose by 1.09 per cent to 3,726.26.