Sensex rebounds by 323 pts; Sun Pharma, RIL lead rally
Mumbai: Staging a strong comeback, the market benchmark BSE today surged by 323 points to regain the 28,500- level on value-buying in recent beaten-down stocks such as Sun Pharma, while a Rajya Sabha panel endorsing the GST bill also helped the rally.
Moreover, improved rains and falling global crude prices, which boosted hopes of a rate cut by the Reserve Bank next month, too accelerated buying, traders said.
Sun Pharma’s shares today recovered on value-buying and surged 3.35 per cent to Rs 833.05 after tumbling 15 per cent in yesterday’s trade.
Meanwhile, a Rajya Sabha Select Committee endorsed almost all the provisions in the landmark bill on GST, while also agreeing to demands of parties like TMC for a five-year compensation to states.
The 30-share BSE index opened lower at 28,159.42 and eased to touch day’s low of 28,070.91 in early trade. However, it bounced back to trade in positive zone on widespread buying to hit a high of 28,546.42 before winding up 322.79 points or 1.15 per cent higher at 28,504.93.
The gauge had lost 281.17 points in the last two days.
The 50-share NSE Nifty after regaining the 8,600-level, scaled session’s high of 8,643.90 before settling 104.05 points or 1.22 per cent higher at 8,633.50, its highest closing since April 16.
Among Sensex gainers, RIL topped the list by surging 4.26 per cent on buying by participants on hopes of a strong earnings to be released on Friday.
Other gainers included M&M, Bajaj Auto, HDFC, HUL, Tata Steel, Wipro, Cipla, NTPC, HDFC Bank, GAIL, ONGC, Coal India, Maruti Suzuki and Hero MotoCorp.
Among sectoral indices, BSE oil&gas index gained the most by soaring 2.36 per cent, followed by Banking 1.45 per cent.
ICICI Bank rose 1.80 per cent, SBI gained 1.67 per cent, HDFC Bank 1.43 per cent and Axis bank 0.81 per cent.
In commodities, brent oil has now fallen nearly 10 per cent in July. India imports more than 75 per cent of its crude. Brent crude for September delivery was trading lower at USD 56.51 a barrel.
Globally, other Asian markets ended lower, while European stocks were down in their early trade on weak corporate earnings concern.