Reversing the decline in early trade due to tumbling of telecom stocks, the Bombay Stock Exchange benchmark Sensex today ended over 92 points higher as funds started buying blue-chip stocks across FMCG, metal and banking counters.
The 30-share Sensex, which was down 244 points during intra-day, bounced back to end with a gain of 92.13 points at 16,958.54 as stocks in FMCG, metal and banking segments recorded handsome gains.
Yesterday, the benchmark index had ended down by over 268 points or 1.56 per cent.
Similarly, the wide-based National Stock Exchange index Nifty closed 24.20 points higher at 5,027.30, after touching the day’s low of 4,921.05.
The market recovered as foreign and domestic funds returned to pick up fundamentally strong stocks at existing low levels, triggered by a firming global trend and a better opening in European stock markets this afternoon.
Report that the US service sector expanded for the first time in a year in September, signalled investors for an early global economic recovery and boosted trading sentiment globally.
In the 30-BSE index stocks, 16 closed with gains while 14 others led by Bharti Airtel and Reliance Communication ended with losses. Both the stocks recorded losses of over 10 per cent each.
Shares of software exporting companies led by Infosys and Tata Consultancy recorded heavy losses after rupee surged to four-month high against the US dollar. Over 50 per cent of the revenue of software exporting firms come from the US markets.
The market mainly got support from higher global advices.
US markets ended up yesterday after services sector expanded for the first time in several months.
The Dow Jones Industrial Average and the Nasdaq Composite Index rose by 1.18 per cent and 0.98 per cent respectively.
Buoyed by positive sentiment in the US and Europe, most of the Asian indices also ended in the green. European markets such as Germany, France and the UK were quoting up by about 1.5 per cent.
The FMCG sector index gained the most rising 3.27 per cent to 2,716.73 followed by metal index, up by 2.23 per cent to 14,159.28. Banking index gained 1.88 per cent to 9,915.50, capital goods index by 1.48 per cent to 13,822.93, power index by 1.18 per cent to 3,068.97 and auto index by 0.56 per cent to 6,523.02.