The benchmark BSE Sensex bounced back on Wednesday, after a day's decline, rallying over 151 points before closing at nearly a two-week high of 28,223.08, powered by gains in IT, FMCG and realty.
The Nifty too rallied, which surged 51 points amid sustained fund inflows. Sentiment improved after a survey showed that services sector is back on the growth track in July, after two straight months of contraction, as new orders surged and hiring picked up to hit a two-year high. Better-than-expected earnings by Bharti Airtel and Britannia helped, brokers said.
The 30-share BSE index opened on a firm footing before touching the day's high of 28,315.71, driven by bargain hunting by investors in beaten-down stocks. But profit-booking at improved levels capped early gains as the benchmark finally settled higher by 151.15 points, or 0.54%, at 28,223.08, its highest closing since July 23.
In four straight trading sessions - July 29, 30, 31 and August 3, the barometer had risen 727.83 points supported by the government's plans to inject fresh capital into state-owned lenders by September and EPFO getting ready to invest in equity markets.
The 50-share NSE Nifty recovered 51.05 points, or 0.60%, to close at 8,567.95 after shuttling between 8,591.85 and 8,545.85 intra-day. It had lost 26.15 points on Tuesday. The recovery in the Sensex and the Nifty was supported by gains in IT stocks, which rose on the back of a strong US dollar, at a four-month high, on growing expectations of a rate hike by the US fed.
Wipro climbed 2.94% while Infosys was up 2.52%. Other blue-chips such as Bajaj Auto, Tata Steel, Lupin, M&M and Hero MotoCorp, among others, advanced. Bharti Airtel ticked up 0.77% after the company posted a nearly 40% growth in consolidated net profit for the June quarter. Nestle is back in the limelight, up 7.53%, after the FSSAI-approved laboratory found Maggi noodles in compliance with safety standards. Adani Enterprises went up on reports of a possible JV with Foxconn.
The broader markets shone as the BSE small-cap and mid-cap indices rose up to 0.96%. Meanwhile, foreign portfolio investors net bought shares worth Rs 118.70 crore on Tuesday. Asian markets ended higher. European stocks were ruling firm in opening trade, boosted by better-than-estimated earnings.