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Sensex rebounds from a 3-1/2 month low, up 219 points

The benchmark BSE Sensex rebounded from its over three-and-a-half months low Tuesday by rising 219 points to settle at 27,396.38 on late buying in blue-chips ICICI and Maruti Suzuki whose earning numbers beat estimates.

However, taxation concerns and corporate earning worries limited the gains in choppy session, brokers said.

“MAT issue and poor Q4 FY15 leading to earnings downgrade is concerning the market,” said Vinod Nair, Head-Fundamental Research at Geojit BNP Paribas Financial Services.

Meanwhile, World Bank 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.

World Bank projects India’s GDP to expand to 7.5 per cent in the current financial year. “Growth has accelerated, inflation has declined, the current account deficit has narrowed and external reserves have increased,” it noted.

Besides, Finance Minister Arun Jaitley said in an article written in a foreign newspaper that he is considering setting up a high-level committee to resolve legacy tax cases.

Snapping its three-day losing streak, the BSE 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 at 326.65, its biggest single session gain since September 2013.

Country’s largest carmaker, Maruti Suzuki share continued its winning streak and gained 4.93 per cent to Rs. 3,826.65 after its Q4 earnings beat estimates.

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