Sensex rebounds by 75pts on value-buying; metal, pharma rise
The BSE benchmark Sensex today recovered by 75 points on emergence of value-buying in metal, auto and pharma stocks as investors judged yesterday's fall as excessive amid firming global cues.business Updated: Oct 31, 2012 16:56 IST
The BSE benchmark Sensex today recovered by 75 points on emergence of value-buying in metal, auto and pharma stocks as investors judged yesterday's fall as excessive amid firming global cues.
The 30-share Sensex, which had lost 205% in the previous session, bounced back by 74.53 points, or 0.40%, to close at 18,505.38.
Maruti Suzuki and Dr Reddy's rose 2-3% after robust earnings, while metal stocks including Hindalco, Jindal Steel and Sterlite Industries also notched up smart gains.
Among Sensex components, overall 20 stocks gained including HDFC, SBI, ICICI Bank and Sun Pharma. Brokers said Wednesday's upward move was supported by recent under-performers after RBI disappointed markets by not cutting repo rate.
"After a letdown yesterday, post the RBI policy, markets bounced back supported by autos, metals and pharma stocks. A softer dollar also helped improve the overall sentiment," said Milan Bavishi, Head Research, Inventure Growth & Securities.
Analysts said auto stocks were in demand on expectations the vehicle sales might surge due to the festival season, while banking shares rose on hopes of better earnings on hike in liquidity.
The Indian market received further boost on firming global trend after economic data from South Korea and Taiwan signalled that the global slowdown may be easing.
The National Stock Exchange index Nifty rose by 21.80 points, or 0.39%, to close at 5,619.70, after touching the day's low of 5,583.05.
Sectorally, the BSE healthcare index gained the most (1.72%), followed by auto sector (1.55%), realty (1.43%) and metal (1.20%).