Mumbai : Market benchmark Sensex on Tuesday bounced back by 347 points to end its five-day losing streak helped by a recovery in banking, pharma and FMCG stocks. The 30-share index closed at 36,652.06, up by 347.04 points or 0.96 per cent in a volatile trade.
The 50-share NSE Nifty ended sharply higher by 100.05 points, or 0.91 per cent, at 11,067.45 points. A recovery in financial stocks led by HDFC and HDFC Bank helped the key indices break the five-day losing streak which saw the Sensex tanking 1,785.62 points or more than 5 per cent.
Kotak Bank, Axis Bank, SBI, IndusInd Bank and ICICI Bank also bounced back on positive sentiment after LIC chairman V K Sharma commented that the insurance giant would not allow debt-ridden IL&FS to collapse and was exploring options to revive it.
Reports of successful fundraising by Indiabulls Housing Finance also bolstered the market sentiment, analysts said.
“After a volatile trade, market bounced back towards closing backed by renewed buying in financial & pharma stocks. Continued weakness in rupee invited investors’ attention towards export-oriented sectors and at the same time keeping fiscal path on edge. Domestic fund flow continued to add liquidity in the market due to value buying opportunity after the recent correction,” Vinod Nair, Head of Research, Geojit Financial Services commented.
Mixed Asian cues and a firming trend in European markets largely on the back of strong earnings accelerated buying activity towards the fag-end.
The session was marked by volatility and stock-specific action, even as the overall sentiment remains weak as a fresh round of US-China tariffs and a surge in oil prices to near four-year highs added to worries about risks to global growth, brokers said.
The rupee also pared initial losses to trade 5 paise higher at 72.58 against the dollar (intra-day).
Covering-up of short positions by speculators ahead of September month expiry in the derivatives segment on Thursday also helped the market stage a smart rally.
Domestic investors made purchases worth Rs 2,284.26 crore while foreign investors sold equities worth Rs 1,231.70 crore on a net basis, provisional market data showed.
