Markets rebound on global cues

♦ Sensex rallies 488.10 pts to 59,677.83

♦ Nifty spurts 144.35 pts to 17,790.35

♦ Re recovery further strengthens investor sentiment

♦ Strong buying in auto, realty and IT stocks

Mumbai: Equity indices resumed their climb on Thursday after a day's pause, in tandem with global markets as investors took heart from a dip in energy prices and progress over debt-ceiling negotiations in the US. A strengthening rupee, which snapped its three-session losing streak against the US dollar, also bolstered sentiment, traders said. Banks, consumption and auto stocks saw robust buying ahead of RBI's policy decision on Friday. The IT pack also traded in the green on earnings optimism, with TCS scheduled to announce its results on Friday.

The 30-share BSE Sensex rallied 488.10 points or 0.82 per cent to finish at 59,677.83. Similarly, the broader NSE Nifty spurted 144.35 points or 0.82 per cent to 17,790.35. Titan was the star performer in the Sensex pack, soaring 10.69 per cent, after the company reported strong demand recovery in the July-September quarter.

"Domestic market clawed its way out to a gap up opening following strong global sentiments, as US debt default worries calmed along with easing bond yields and crude oil prices. The domestic market was pushed by strong buying in auto, realty and IT sectors which bolstered the market to sustain the trend in favour of the bulls. Despite the global semiconductor shortage, auto stocks sparked a rally in hopes of demand revival during the festive season while the expectation of better Q2 numbers for IT and strong pre-sale numbers helped the realty sector," said Vinod Nair, head (research) at Geojit Financial Services.