Sensex rebounds by 75 points on value-buying; metal, pharma rise
Mumbai: After a knee-jerk reaction on Tuesday due to RBI policy, the BSE benchmark Sensex on Wednesday bounced back by 75 points led by metal, auto and pharma stocks on buying at lower levels, amid firm global trends.
The 30-share Sensex, which had lost 205 percent Tuesday, bounced back by 74.53 points, or 0.40 percent, to close at 18,505.38.
Maruti Suzuki and Dr Reddy's rose 2-3 percent after robust earnings, while metal stocks including Hindalco, Jindal Steel and Sterlite also inched higher.
The NSE Nifty rose by 21.80 points, or 0.39 percent, to close at 5,619.70, after touching day's low of 5,583.05.
Finance Minister P Chidambaram's comment in Delhi that the government will endeavour to maximise revenue collection and contain expenses to limit fiscal deficit to 5.3 percent of the GDP in the current fiscal year, also helped lift the mood.
Among Sensex components, overall 20 stocks rose including HDFC, ICICI Bank and Sun Pharma. SBI, which was the worst performer yesterday tanking over 4 percent, rebounded by 1.71 percent today.
"After a letdown yesterday post the RBI policy, markets bounced back supported by autos, metals and pharma stocks. A softer dollar also helped improve the overall sentiment," said Milan Bavishi, Head Research, Inventure Growth & Securities.
Analysts said auto stocks were in demand on expectations the vehicle sales might surge due to the festival season, while bank shares rose on hopes of higher liquidity.
However, capital goods and oil & gas scrips continued to face selling pressure.
Asian stocks mostly ended higher on speculation that the Federal Reserve would maintain monetary stimulus to help the US economy recover from the superstorm Sandy. Europe was also trading up in afternoon trade.
European stock markets were also trading higher in their afternoon trade. Key indices in France, Germany and UK rose by between 0.04-0.73 percent.
Overall, 19 out of 30 sensex-based scrips closed with gains while others finished with losses. Hindalco was the top gainer with a rise of 5 percent, followed by Maruti Suzuki (2.99 percent), Tata Motors (2.81 percent) and Cipla (2.52 percent).
Jindal Steel (2.12 percent), Dr Reddy's Lab (1.97 percent), Sterlite (1.74 percent), SBI (1.71 percent), Sun Pharma (1.71 percent), HDFC (1.32 percent) and M&M (1.20 percent) also ended with good gains.
Kishor P Ostwal, CMD, CNI Research Ltd. Said," After the knee jerk reaction, market recovered today on the back of SBI rally...I think market is definitely in bullish mode and will test new highs."
However, ONGC declined by 1.72 percent, followed by Gail India (1.70 percent), BHEL (1.32 percent) and L&T (0.80 percent).
Among the sectoral indices, the BSE-HC firmed up by 1.72 percent, followed by BSE-Auto (1.55 percent), BSE-Realty (1.43 percent) and BSE-Metal (1.20 percent).
Total market breadth turned positive as 1,483 stocks ended higher while 1,302 scrips finished lower. The total market turnover was low at Rs 1,904.28 crore from Rs 2,184.19 crore yesterday.
Meanwhile, FIIs sold shares worth a net Rs 191.53 crore yesterday as per provisional data from the stock exchanges.