Sensex snaps four-day fall; up 285 pts as oil prices ease
The BSE benchmark index Sensex recovered by over 174 points in early trade today on fresh buying by funds and retailers at attactive lower levels.business Updated: Feb 28, 2012 17:03 IST
Snapping a four-day falling streak, the BSE benchmark index Sensex today recovered by 285 points on funds buying in bluechips, led by Reliance Industries, amid firming global trends as oil prices declined.
The 30-share barometer, which had lost 977 points in last four trading sessions, spurted by 285.37 points, or 1.64% to 17,731.12 points.
Brokers said easing crude oil prices raised hopes of a stable global economic recovery and cut in policy rates by the Reserve Bank of India which lifted the market.
The rally was headed by refinery, finance and interest-senstive stocks like realty and capital goods.
A firming trend in the Asian region and higher opening in Europe boosted by retreating oil prices and positive numbers from the US further supported the market.
The broad-based National Stock Exchange index Nifty rose by 94.30 points, or 1.79% to 5,375.50.
The most-heaviest on the benchmark and oil refining major Reliance Industries spurted by 1.90% to Rs 796.05, ONGC by 1.02% to Rs 283.55 and Gail India by 0.99% to Rs 374.05 as investors felt a fall in crude oil prices might improve corporate earnings.
Among lenders, Bank of India rose by 4.92% to Rs 2,229.55, Canara Bank by 8.77% to Rs 516.40, Yes Bank by 9.14% to Rs 348.80, HDFC Bank by 3.29% to Rs 530.20 and ICICI Bank by 2.69% to Rs 910.75.
The realty sector index gained the most by rising 5.91% to 1,934.37 as HDIL spurted by 13.77% to Rs 112.75, DB Realty by 10.40% to Rs 80.70 and DLF by 4.78% to Rs 225.85 as a decline in interest rate might boost sale of homes.
The capital goods sector index was second runner up by adding 4.02% to 10,595 followed by banking index by 3.93% to 12,045.11.