Sensex bounces back from early lows; gains 106 pts
The benchmark Sensex on Tuesday bounced back from early fall and scored smart gains in the morning trade on heavy FII inflows.business Updated: Oct 09, 2007 11:31 IST
The benchmark Sensex on Tuesday bounced back from early fall and scored smart gains in the morning trade on heavy FII inflows, even as the government's attempts to persuade its Left allies over the nuclear deal failed ahead of their meeting later in the day.
After tumbling to a low of 17,287.19, the Bombay Stock Exchange (BSE) barometer recovered from the initial losses and was quoted at 17,597.30 at 10.30 am, up 105.87 points over yesterday's close of 17,491.39.
The broad-based S&P CNX Nifty of the National Stock Exchange (NSE) gained 13.05 points to 5,098.15 at 10.30 am from previous close of 5,085.10.
The sharp recovery was credited to heavy net purchases by foreign institutional investors (FIIs) yesterday, which pumped in about Rs 1,459.51 crore, as per the provisional data.
FII inflows have reached USD 14.5 billion so far in the year, with over USD 5 billion coming in since September 19.
The government's attempts to persuade Left parties to allow it to go ahead with negotiations with IAEA to help operationalise the Indo-US nuclear deal failed yesterday with its outside supporters rejecting any such plea.
The market seems to be awaiting the outcome of the UPA and the Left meeting scheduled to be held later in the day, market players said.
Meanwhile, IT sector attracted fairly good buying support and showed gains in early trade on expectations of better-than-expected quarterly results. IT bellwether Infosys Technologies is scheduled to release second quarter results on October 11.