Free Press Journal

Sensex rebounds about 338pts as lower oil eases inflation fear


Mumbai: Fall in the global crude oil prices eased inflation concerns helping the benchmark Sensex today to rise about 338 points to 25,368.90, its biggest gain in more than two weeks.

Oil prices slipped on receding fears that the crisis in Iraq could result in a major supply disruption. US benchmark West Texas Intermediate fell 54 cents to USD 105.63 per barrel and Brent eased 63 cents to USD 113.69.

Firm Asian cues after data showed that Chinese manufacturing grew in June for the first time this year, too boosted the overall sentiment. Regional indices closed higher with gains of upto 1 per cent.

Equity brokers also said hectic short-coverings ahead of the expiry of June contract on Thursday also helped Indian indices Sensex and Nifty script a smart rebound.

The BSE 30-share Sensex resumed strong in line with firm Asian markets and gradually improved further to settle at 25,368.90, a rise of 337.58 points or 1.35 per cent. This is its biggest rise in absolute terms since June 6, 2014 when it had shot up by 376.95 points.

Before today, the Sensex had tumbled by 489.87 points in the previous four straight sessions on rising oil prices and forecasts of below-average monsoon rains.

The 50-issue CNX Nifty of the NSE today jumped 86.85 points, or 1.16 per cent, to end at 7,580.20.

Barring healthcare, 11 BSE sectoral indices closed with gains with realty, consumer durable, oil&gas, power, banking, metal and auto taking the lead.

“Softening in crude oil prices and positive global cues boosted the market sentiment. Metal and mining stocks also showed buying interest after China posted positive manufacturing data,” said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.

Heavyweights like HDFC, RIL, ITC, ICICI Bank, TCS, SBI, Tata Motors, HDFC Bank, L&T, Axis Bank, ONGC and Gail India attracted good buying interest.

Meanwhile, equity derivatives turnover at the BSE rose to over Rs 3.3 lakh crore level due to heavy volume in index options.