Mumbai: A late rally in Chinese equities on Tuesday boosted global investor sentiment, which helped the benchmark BSE Sensex to recover from its 15-month low, while gains in banks and metal stocks on value-buying also played part in the index’s surge of 424 points to 25,317.87.
The broad-based NSE Nifty also reclaimed the 7,600-mark. Trading mood also perked up after Prime Minister Narendra Modi met top CEOs, bankers, economists and ministers and discussed ways to bolster the economy amid global slowdown.
“The government’s meeting with corporate leaders, acknowledging the global concerns, which is impacting India has calmed the market,” Vinod Nair, Head-Fundamental Research at Geojit BNP Paribas Financial Services.
In line with domestic equities, the rupee also rebounded from two-year lows. After opening in the positive zone, the 30-share Sensex barometer rose further to regain the 25,000-level in early trade.
However, it gave up all of its gains on emergence of profit-booking at every rise. The index again bounced back in afternoon deals, tracking rebound in global markets and surged to day’s high of 25,411 before ending at 25,317.87, a hefty rise of 424.06 points, or 1.70%.
The gauge had lost 870.97 points in the last two sessions on China-fuelled worries and deficient rains. The 50-issue NSE Nifty after reclaiming 7,700-level to hit a high of 7,720.90 points, finally settled 129.45 points or 1.71% higher at 7,688.25.
GAIL was the biggest BSE gainer with a rise of 6.48%, followed by Tata Steel 5.97 %. Overall, 26 counters gained from the 30-scrip index. Other major gainers were ICICI Bank, Vedanta, L&T, M&M, SBI, Tata Motors, HDFC, NTPC, HDFC Bank, RIL, Maruti Suzuki, Wipro, ONGC, Hindalco, Hero MotoCorp and Sun Pharma.
Moreover, BSE mid-cap index recovered by 1.02% and small-cap index rose 0.60%.
Sectorally, banking index gained the most by rising 3.61 per cent, followed by power 3.17%, capital goods 3.16%, realty 2.63% and metal 2.33%. Globally, Shanghai Composite index ended 2.92%, Hong Kong’s Hang Seng index surged 3.28%, while Japan’s Nikkei shed 2.43%.
European shares were in the green in their early trade.