Mumbai : After two days of sharp losses, the benchmark Sensex on Wednesday rebounded from three-week lows and closed with a gain of 139 points in line with positive global markets on hopes Fed will retain its low interest rate regime and China will pump fresh funds in banks to boost lending.
The 30-issue BSE Sensex resumed strong in line with rally in Asian stocks and moved in positive terrain throughout the day before concluding at 26,631.29 — a rise of 138.78 points or 0.52 per cent. In last straight two days, it had plummeted 568.53 points or 2.10 per cent.
On Tuesday, it had registered its worst single-day drop of 324 points in nearly 7 weeks on across-the-board selling. The broader 50-issue CNX Nifty of the NSE also recovered as it rose 42.60 points, or 0.54 per cent, to 7,975.50.
“Speculation that Fed would maintain its interest rates low and boost growth for now and that China’s central bank will provide the country’s big banks with fresh loans – keep markets and commodities markets globally upbeat,” said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
The US Fed’s two-day policy meeting ends later tonight. Buying was seen in selective blue-chips but was all-round as 10 out of 12 BSE sectoral indices closed in the green. Second-line shares, which suffered the most yesterday, recouped some ground but underperformed the Sensex. Meanwhile, Foreign Portfolio Investors (FPIs) sold shares worth a net Rs 828.95 crore on Tuesday, while DIIs bought shares worth Rs 465.61 crore, as per the provisional data from stock exchanges. Globally, Asian markets mostly rose Wednesday, with Shanghai leading gains. Report said the People’s Bank of China would inject 500 billion yuan into the five top state-owned banks, with a view to boosting lending to businesses.
Asian stocks, excepting Japan, finished higher between 0.49 per cent and 1.00 per cent. European markets too were quoting better ahead of the US Fed’s decision on interest rates late today.
