Erasing intra-day losses of over 260 points, the BSE benchmark Sensex today ended 82 points higher and closed above the psychological 16,000 level on emergence of value-buying in fundamentally strong stocks led by State Bank of India and a sharp recovery in rupee from record lows.
The 30-share Sensex, which tumbled to 15,809.71 in early trade, bounced back by 82.27 points, or 0.51 per cent to settle at 16,152.75.
The market commenced on a bearish note as the index dipped below the key 16,000 level as rupee tumbled to a new all-time low of 54.90 amid mounting worries over worsening Eurozone crisis as Moody's downgraded 16 Spanish banks, brokers said. The trading sentiment was soured after data showed retail inflation in the country rose to 10.36 per cent.
However, the recovery was led by State Bank of India after it posted significant rise in profits in fourth quarter and announced 350 per cent dividend. It shares spurted by 5.08 per cent to Rs 1,942 after hitting a low of Rs 1,820 during the session.
The rupee also recovered at mid-way to Rs 54.44 from its record low levels of 54.90 in early trade. It had closed Rs 54.47 versus the US dollar yesterday.
The surge in the the domestic market was led by stocks belonging to banking, FMCG and refinery. Among the Sensex pack, 19 scrips closed with gains while 11 ended with losses.
Auto stocks like Tata Motors, Maruti Suzuki and Bajaj Auto slumped in the range of 2.6-4.1 per cent.
On similar lines, the NSE 50-share Nifty, after dipping below a crucial 4,800 levels recovered to close higher by 21.25 points, or 0.44 per cent to 4,891.45.