Mumbai: The Bombay Stock Exchange benchmark Sensex today rallied over 298 points on emergence of buying by funds in heavy-weight stocks that were available at attractive low levels.
The 30-share index, which closed in the red for the last six trading sessions and even opened lower this morning, bounced back sharply by 298.21 points at 19,035.48, after touching the day’s high of 19,210.48 and a low of 18,636.21 points.
Similarly, the wide-based National Stock Exchange index Nifty surged by 78.30 points at 5,695.40, after touching a high of 5,758.85 and a low of 5,591.60 points.
The major support to the market came in from banking, consumer goods, real estate, capital goods and power sector stocks.
The stock market showed signs of recovery after a weak start with the benchmark Sensex gaining 60 points during morning trade on short covering by operators coupled with buying support at lower levels.
The mid-cap and small-cap shares attracted good activity as investors shifted their focus to these segments in a bid to churn portfolios at the current market levels.
Resuming lower at 18,681.10, the BSE barometer later recovered to touch 18,795.88 in the initial 15 minutes of trade, a rise of 59.61 points over yesterday’s close of 18,737.27.
The Sensex later fell back and was quoted at 18,734.73 at 10:30am on some profit selling by traders.
The broader S&P CNX Nifty of the National Stock Exchange also was up by 6 points to 5,623.10 at 10.30 am from previous close of 5,617.10.
The market had some positive impact of indications that the Left may consider allowing the government to discuss with the international atomic watchdog IAEA an India-specific safeguards agreement needed for operationalizing the nuclear deal with the US.
Early morning trade
The benchmark Sensex lost nearly 90 points in early trade on the Bombay Stock Exchange on sustained selling by funds.
The 30-share index, which lost 170 points yesterday, fell further by 89.91 points to 18,647.36 points in the first five minutes of trading.
The fifty-share Nifty of the National Stock Exchange declined by 25.50 points at 5,591.60.
However, in the next 15 minutes, both the indices recovered their losses and were back into green territory, though sentiment remained weak.
At 10:37am, Sensex was at 18,745, up 8 points, while Nifty was trading at 5,624.