The benchmark BSE Sensex on Tuesday reversed its three-session fall by rising 219 points to settle at 27,396.38 as blue-chips ICICI Bank and Maruti Suzuki jumped on better-than-expected earning numbers.
Besides, World Bank on Tuesday said Indian economy has taken strong strides towards higher growth and enhanced stability, aided by a supportive external environment, in particular the sharp decline in oil and commodity prices.
The multilateral lending body said India will grow 7.5 per cent this fiscal year. “Growth has accelerated, inflation has declined, the current account deficit has narrowed and external reserves have increased,” the World Bank noted.
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Moreover, recovery in the rupee that strengthened to Rs. 63.12 against the dollar (Intra-day) too boosted sentiments. Snapping its three-day losing streak, the Sensex opened on a strong footing at 27,215.61 and rose further to 27,365.72 in early trade on emergence of value-buying.
However, it succumbed to profit-booking and slipped into the negative zone to touch a low of 27,073.25, but staged a strong comeback on a flurry of buying in last one hour to hit the session’s high of 27,482.14 before settling 219.39 points or 0.81 per cent higher at 27,396.38.
Stocks of ICICI Bank climbed 8.2 per cent to Rs. 326.65, its biggest single session gain since September 2013. Country’s largest carmaker, Maruti Suzuki share continued Monday’s winning streak and gained 4.93 per cent to Rs. 3,826.65 after its Q4 earnings beat estimates.
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However, taxation concerns and corporate earning worries limited the gains in choppy session, brokers said.
The 50-share NSE Nifty gained 71.80 points or 0.87 per cent to close at 8,285.60. Intra-day, it regained the 8,300-mark to touch day’s high of 8,308 and a low of 8,185.15.
Other gainers on the Sensex included, Tata Motors 2.43 per cent, BHEL 2.76 per cent, Bharti Airtel 2.26 per cent, NTPC 2.09 per cent, Axis Bank 2.08 per cent, SBI 1.97 per cent, Hero MotoCorp 1.39 per cent, HDFC 1.31 per cent, Hindalco 1.04 per cent, M&M 1.02 per cent and Tata Steel 0.92 per cent.
However, shares of ITC, Infosys, Coal India, GAIL, Bajaj Auto, HDFC Bank, Hind Unilever and L&T continued to face selling pressure and limited Sensex’s gains. Meanwhile, foreign portfolio investors sold shares worth Rs. 1,749.33 crore on Monday, as per provisional data from stock exchanges.
Sectorally, the BSE bankex gained the most by surging 2.41 per cent, followed by auto 2.24 per cent, realty 1.60 per cent, power 1.40 per cent and infrastructure 1.21 per cent.
Globally, mixed trend was seen in other Asian markets and lower opening in European markets.