Mumbai: Indian share prices continued recovery for the second day on 4 April 2007after a sharp fall at the beginning of the week, even as Asian markets recovered on lower oil prices and a rally on Wall Street.
Traders said local funds bought into mid and small-cap stocks on bargain hunting after the markets posted the sharpest fall in nearly a year on 2 April.
The benchmark 30-share Sensex of the Mumbai stock exchange closed up 162.19 points at 12,786.77.
The Sensex endured its biggest one-day drop on 2 April since May 18, 2006 after the Reserve Bank of India hiked a key short-term lending rate by a quarter point to 7.75% late last week.
“The recovery in global markets boosted sentiment here. Investors will watch inflation data and full-year corporate earnings to determine future buying activity,” said Hiten Mehta, a fund manager with Fortune Financial Services.
Gainers on the stock exchange led losers by 1,581 to 899 on trading volume of Rs3,218 crore.
HDFC rose Rs73.3 or 5.15% to Rs1,497.2 while private sector ICICI Bank rose Rs16.6 or 2% to Rs820.5.
The rupee rose to an eight-year high against the dollar of 42.9 from 43.1 as banks sold dollars to raise funds in rupees to meet RBI’s requirements for higher cash reserves.
The rupee gained against the euro to 57.2 from 57.6.