Markets bounce back on value-buying

Sensex gain 461.42 pts; Nifty hits high of 159.05 pts

Mumbai: Benchmark indices staged a strong comeback on Wednesday after the recent rout as investors accumulated battered financials, auto and metal stocks amid rupee recovery from record lows.

The BSE Sensex, after a gap up opening of 34,493.21, rallied to hit a high of 34,858.35 before ending 461.42 points, or 1.35 per cent, higher at 34,760.89.

The broader Nifty too reclaimed the key 10,400 mark. It touched a high of 10,482.35, before finally settling at 10,460.10, showing a significant gain of 159.05 points, or 1.54 per cent. 

Key indices stayed in the positive terrain through the session as buying activity gathered momentum. The Sensex had lost nearly 175 points Tuesday.

Sentiment also got a lift after the SBI, coming to the rescue of cash-strapped NBFCs, decided Tuesday to buy their assets to the tune of Rs 45,000 crore, a move that will provide liquidity support to non-banking financing companies (NBFCs) facing headwinds after a series of loan defaults by IL&FS group firms.

Benchmarks largely benefited from value buying in beaten-down stocks, led by Maruti Suzuki, Tata Steel, Yes Bank and SBI amid a better trend at other Asian markets, traders said.

Aviation stocks, too, were in demand on reports of a likely cut in excise for aviation turbine fuel (ATF). Auto stocks also gathered steam along with banks, infrastructure, metals and pharmaceuticals. 

The BSE realty index took the top position among sectoral indices, rising 4.44 per cent, followed by consumer durables (3.77 per cent), bankex (3.53 per cent), capital goods (3.40 per cent).

However, IT and teck indices ended in the negative zone, falling up to 1.52 per cent.

The broader markets showed a firm trend, with the mid-cap and small-cap indices gaining 4.70 per cent and 3.94 per cent, respectively.

Asian markets, too, ended higher. Stocks in Europe were trading in negative zone in mid-morning deals.