In a sudden reversal of fortunes, the Bombay Stock Exchange benchmark Sensex on Wednesday rebounded to post a gain of over 495 points on strong buying support in bank and capital goods stocks which were hammered on Tuesday.
The BSE barometer shed over 550 points yesterday after RBI announced a hike in short-term lending rate and mandatory amount to be parked with it for banks.
The 30-share Sensex closed the day at 14,287.21, higher by 495.67 points, after touching the day's high of 14,322.67.
The banking,l capital goods and realty stocks which were battered in yesterday's onslaught of selling, made handsome recovery on positive trends in global markets.
While the bankex closed higher by 5.21 per cent, realty the next best index today saw a gain of 5.09 per cent. Metal was another significant gainer at 4.69 per cent. IT and tech also ended up in the range of over 3 per cent.
The National Stock Exchange index Nifty also surged by 123.70 points at 4,313.55. It lost 142.25 points yesterday.
Brokers said investors purchased fundamentally strong stocks available at lower levels. They said buying activity gathered momentum as market participants indulged in covering up their short positions ahead of expiry of July contract in derivative segment.
A steep rise in global stock markets, following a fall in crude oil prices, also boosted the sentiments here, they added.