Sensex rebounds by 75 points on value-buying

The Indian market received further boost on firming global trend after economic data from South Korea and Taiwan signalled that the global slowdown may be easing

Brokers said today’s upward move was supported by recent under-performers after RBI disappointed markets by not cutting repo rate. File photo

The BSE benchmark Sensex on Wednesday recovered by 75 points on emergence of value-buying in metal, auto and pharma stocks as investors judged yesterday’s fall as excessive amid firming global cues.

The 30-share Sensex, which had lost 205 per cent in the previous session, bounced back by 74.53 points, or 0.40 per cent, to close at 18,505.38.

Maruti Suzuki and Dr Reddy’s rose 2-3 per cent after robust earnings, while metal stocks including Hindalco, Jindal Steel and Sterlite Industries also notched up smart gains.

Among Sensex components, overall 20 stocks gained including HDFC, SBI, ICICI Bank and Sun Pharma. Brokers said today’s upward move was supported by recent under-performers after RBI disappointed markets by not cutting repo rate.

Analysts said auto stocks were in demand on expectations the vehicle sales might surge due to the festival season, while banking shares rose on hopes of better earnings on hike in liquidity.

The Indian market received further boost on firming global trend after economic data from South Korea and Taiwan signalled that the global slowdown may be easing.

The National Stock Exchange index Nifty rose by 21.80 points, or 0.39 per cent, to close at 5,619.70, after touching the day’s low of 5,583.05.

Sectorally, the BSE healthcare index gained the most (1.72 per cent), followed by auto sector (1.55 per cent), realty (1.43 per cent) and metal (1.20 per cent).