Sensex regains 16k level, up 132 points
The Sensex, which had lost 1,007 points or nearly 6 per cent in the last three sessions, gained 132.16 points or 0.83 per cent at 16,002.51. It touched the day`s low of 15,771.59. The broad-based National Stock Exchange index Nifty rose 36 points or 0.76 per cent to 4,800.60, after reaching the day`s low of 4,728.50.
Globally, although Asian markets were down, European equities rose in the early trade as investors bought stocks following sharp falls yesterday. Key indices in France, Germany and UK were up. "There was huge short covering after European markets recovered from the lows and US Future bounced back into positive territory," said Parag Doctor Associate VP at Motilal Oswal Securities.
"Moreover, there was bargain hunting in the market. Traders recovered short positions ahead of WPI inflation numbers and the RBI credit policy this week," he said. Milan Bavishi, Head Research, Inventure Growth and Securities said, "People are increasingly building up expectation that RBI would now ease its view on rates."
In Asia, key indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan fell by up to 1.88 per cent. Meanwhile, of the 30 Sensex scrips, 24 ended with gains. Major gainers were Hindalco (4.78 per cent), Jindal Steel (4.26 pc), M&M (2.38 pc), NTPC (2.18 pc), RIL (2.02 pc), Bajaj Auto (1.73 pc), DLF (1.63 pc), Tata Steel (1.61 pc), Cipla (1.58 pc), Tata Power (1.57 pc), BHEL (1.49 pc), Hero Motocorp (1.46 pc), Sun Pharma (1.45 pc), Sterlite (1.43 pc), Coal India (1.30 pc), Bharti (1.23 pc) and HDFC Bank (1.04 pc).
However, L&T dropped by 1.94 per cent, followed by ONGC — 0.82 pc , Wipro — 0.60 pc and ICICI Bank 0.33 pc. Among the sectoral indices, the BSE-Metal shot up by 2 per cent, Oil&Gas (1.19 pc), Auto (1.04 pc), Power (0.92 pc) and FMCG (0.70 pc). However, Consumer Durables dropped 2.01 pc and Capital Goods by 0.77 pc. The total market breadth on the BSE continued to remain negative as 1,620 stocks ended with losses while 1,105 stocks finished with gains. The total turnover improved to Rs 2,066.59 crore from yesterday`s closing level of Rs 1,824.22 crore.