Sensex rebounds 166 pts; capital goods, realty stocks rally

After taking a day’s breather, the market today continued its upward journey with the benchmark BSE Sensex rebounding 166 points to 27,895.97 on buying in capital goods, realty and banking shares. 

Ignoring Greek woes, the index recorded its ninth rise in last 10 sessions. 

Besides, covering-up of short positions by speculators on expiry of June month series in the derivative contracts supported today’s rally. 

Globally, other Asian markets ended lower, while European stocks were little changed in their early trade as investors awaited progress in Greek talks. 

In volatile movements, the 30-share BSE index opened lower at 26,660.22 and eased to touch the day’s low of 27,635.76 in early trade. However, it bounced back to trade in positive terrain on across-the-board buying in blue-chip stocks to hit a high of 27,968.75 before winding up 166.30 points or 0.60 per cent higher at 27,895.97. 

Yesterday, the had Sensex lost 74.70 points. 

The 50-share NSE Nifty after regaining the 8,400-level, scaled session’s high of 8,423.15, before settling 37.15 points, or 0.44 per cent higher at 8,398. 

The recovery in the Sensex was supported by gains in Bajaj Auto that climbed 4.65%, while GAIL surged 3.44%. L&T advanced 3.28% and HDFC Bank 1.93%. 

Among sectoral indices, BSE capital goods index gained the most by surging 2.12%, followed by realty 1.05%. 

The broader markets also performed well on good buying by retail investors. The BSE mid-cap and the small-cap indices rose by 0.68% and 0.23%, respectively. 

Stocks of mortgage lenders were in good demand on hopes the government’s move on housing would improve their earnings. 

HDFC rose by 2.20%, LIC Housing gained 0.55, while Dewan Housing up 2.41%. 

Prime Minister Narendra Modi today unveiled three mega flagship urban schemes aimed at developing cities as engines of growth. 

Meanwhile, foreign investors bought shares worth Rs 92.57 crore on Wednesday.