Sensex recovers 300 pts as inflation dips

Sensex recovers 300 pts as inflation dips

Mumbai: The Bombay Stock Exchange benchmark Sensex rebounded to trade over 299 points higher in early trade on Friday on increased buying by funds, triggered by a sharp fall in inflation and overnight gains in the US markets.

Short-covering by speculators also supported the recovery in stock prices.

The bellwether index, which had lost more than 1,000 points in the past two sessions, rose by 299.78 points at 9,836.11 following surge in heavy-weight stocks.

The wide-base National Stock Exchange’s Nifty, taking cue from the 30-share index, moved up by 90.35 points at 2,938.80.

Marketmen said sentiment turned better after inflation dipped from 10.72% to a six-month low of 8.98% for the week to 1 November.

They said a strong rally in the US markets, where Indian companies’ ADRs gained up to 18 per cent, and firming trends at other Asian bourses also buoyed the trading sentiment here.

Reliance Industries, gained Rs23.95, or 2.06%, at Rs1,186.10, while banking major State Bank of India rose Rs49.50, or 4.21%, at Rs1,225.00.

Besides, shares of BHEL, L&T, Reliance Infra, RCom, Bharti Airtel, Satyam Computers and Wipro also moved up.

On Wednesday, the 30-share barometer had settled the day lower by 303.36 points at 9,536.33 after swinging wildly on alternate bouts of selling and buying.

The Stock market was closed on Thursday on account of Guru Nanak Jayanti.