The market benchmark Sensex on Wednesday recovered from over one-month lows by rising 104.20 points to 27,563.43 as investors preferred to create positions in IT, capital goods and auto stocks ahead of F&O expiry on Thursday.
BSE Sensex managed to end four-day losing streak, in which it had lost close of 1,050 points, as market found immediate support in the continuing fall in crude prices.
Oil fell for a sixth day today to USD 53.06 per barrel.
Moreover, experts hoping that an imminent rate hike by the US Fed this year will have a minimal impact on emerging markets, including India, supported the upside.
“This is evident from the hike in global bond yields, the appreciation of the dollar and the sharp fall in commodities,” said Vinod Nair, Head-Fundamental Research at Geojit BNP Paribas Financial Services.
The BSE 30-share barometer resumed higher and improved further to a high of 27,609.29 before falling back to a low of 27,470.09.
It finally, closed at 27,563.43 — a gain of 104.20 points or 0.38 per cent.
Among the 30-Sensex constituents, 20 shares ended higher.
The broad-based NSE Nifty also ended higher by 38.05 points or 0.46 per cent to 8,375.05. Intra-day, it shuttled between 8,381.50 and 8,338.45.
Covering-up of outstanding short positions by traders in view of Thursday’s July’s month expiry in the derivatives segment too supported the recovery.
Asian stocks closed mixed with upward bias. Shanghai index rebounded 3.44 per cent after three sessions of losses.
European markets were too higher in late morning deals.
Back home, stocks of Tata Steel and Hindalco were back in demand and rose up to 0.95 per cent as prices of industrial metals recovered in global markets.
Other Sensex gainers were Tata Motors, Lupin, BHEL, Maruti Suzuki, Hero MotoCorp, L&T, Bharti Airtel, ICICI Bank, HDFC, Sun Pharma, Vedanta, Cipla, Axis Bank, Bajaj Auto and ONGC.
Among BSE sectoral indices, Capital Goods gained the most by rising 1.89 per cent, followed by IT 1.48 per cent, auto 1.39 per cent, teck 1.34 per cent and Realty 1.22 per cent.
Meanwhile, Foreign Portfolio Investors (FPIs) sold shares worth a net Rs. 1,375.66 crore, as per provisional data.
