Belying expectations benchmark Sensex on the Bombay Stock Exchange notched up a marginal gain of over 100 points on Wednesday to snap the five-day long losing spree on buying support in heavyweight stocks at lower levels.
The 30-share Sensex, which was widely expected to go down, closed the day higher at 14,220.07, a gain of 113.49 points. The late rally was led by market leader and index heaviest Reliance Industries which shot up by Rs 69.15 at Rs 2,135.35.
Initially the 30-share Sensex dropped major 375 point at open after on fears of tighter liquidity after Reserve Bank yesterday raised short-term lending rate and mandatory cash deposits for banks cash reserve ratio.
In early selling the key index touched a low of 13,731.54, a level last seen on May 11 last year.
Following RBI's decision, interest rate sensitive bank stocks index, led by SBI, ICICI Bank and HDFC Ltd, closed lower by 23.85 points at 6,475.81 after testing the session's low of 6,261.63, even as other indices remained higher.
Marketmen said buying trend emerged as brokers covered their pending short positions ahead of tomorrow's June expiry in the derivatives segments.
In similar fashion, the second wide-based National Stock Exchange index Nifty, after cracking 4,100 points level to touch 4093.20, closed the day higher by 61.55 points at 4252.65.
Besides, RIL, RCom also closed higher by by Rs 34.20 at Rs 509.05 on BSE, followed by Reliance Infra by Rs 37.95 at Rs 948.95, Tata Steel by Rs 31.70 at Rs 742.95 and BHEL by Rs 51 at Rs 1442.