Mumbai: Cutting short its three-day losing run, the benchmark BSE Sensex on Thursday rebounded by 164 points to close at 29,332.16 as oil & gas, auto, metal and capital goods stocks advanced amid rebound in global markets.
Brokers said the sentiment got a lift largely in tandem with a rebound in global markets ahead of a crucial congressional vote on US healthcare reform later in the day.
After opening higher at 29,201.01 points, the Sensex advanced to hit a high of 29,373.79 in day trade.
It, however, pared some of the gains due to profit-booking towards the close and finally settled at 29,332.16, up by 164.48 points or 0.56%.
The 30-scrip gauge had lost 481.31 points in the previous three sessions as euphoria over the BJP’s win in key state of Uttar Pradesh tapered off and concerns over US President Donald Trump’s ability to deliver on promises on tax and banking reform sank in.
The NSE Nifty also moved up 55.85 points, or 0.62%, to 9,086.30 after shuttling between 9,099.05 and 9,048.60. Buying activity was so strong that all the sectoral indices except FMCG ended in the green, rising up to 1.21%.
Tata Motors was the biggest gainer among Sensex scrips, rising by 2.59%. GAIL, NTPC and Wipro too rose up to 2.39%. Reliance Industries and Infosys also advanced over 1% to help the index close with strong gains.
Tracking overall trends, the broader markets were also in better shape with the mid-cap surging 0.96% and the small-cap index rising 0.79%. FMCG majors ITC and Hindustan Lever lost up to 1%.
Also Read|Hindustan Zinc shares rise 3.3% after dividend announcement
“The bounce-back is due to both global and local factors. Mutual funds are getting record-high inflows everyday. Flows have been very strong on both domestic and FII (Foreign Institutional Investors) fronts,” said Miraj Vora, derivative analyst at Prabhudas Lilladher Pvt Ltd.
As per the provisional data available on the NSE website, FIIs were net buyers of stocks worth Rs357 crore on Wednesday.
“We are heading into the expiry week. So there would be pressure on that front. It’s looking very difficult for the Nifty to cross the 9,150-9,200 levels on the upside or break 9,000 on the lower side for this expiry,” added Vora.
