Markets rebound on positive global cues

Mumbai: Benchmark indices BSE Sensex and NSE Nifty rebounded nearly one per cent on Tuesday following buying in IT giants TCS and Infosys, foreign fund inflows and positive global trends.

After a firm opening, the 30-share BSE Sensex climbed 454.67 points or 0.63 per cent to settle at 72,186.09 points. As many as 19 Sensex shares advanced and 11 declined. During the day, the barometer jumped 529.98 points or 0.73 per cent to 72,261.40 points. The Nifty gained 157.70 points or 0.72 per cent to close at 21,929.40, driven gains in BPCL, HDFC Life

and HCL Tech.

A rebound in Chinese markets also bolstered the sentiment, analysts said. Chinese markets jumped up to 4 per cent after Monday’s steep losses as a state-run investment fund said it would jack up share purchases. Reports also suggested China President Xi Jinping was set to meet with officials to discuss the markets.

“The market exhibited a positive breadth, registering moderate gains, with investors showing reluctance to significantly trim their positions ahead of the RBI MPC meeting. Expectations for a Dovish monetary policy buoyed sentiment in the bond market. Oil & gas stocks also advanced as the market weighed down geopolitical risks in the Middle East and awaited improvements in the weekly US crude inventory,” Vinod Nair, head (research), Geojit

Financial Services.

“All key sectors, barring banking, are attracting buying on a rotational basis and that is helping the index to maintain a positive tone amid consolidation,” added Ajit Mishra, SVP - Technical Research, Religare Broking Ltd.

In the broader market, the BSE smallcap gauge climbed 1.23 per cent and midcap index jumped 1.06 per cent. Among the indices, oil & gas zoomed 3.02 per cent, IT jumped 2.94 per cent, teck climbed 2.74 per cent, telecommunication went up by 2.17 per cent, energy (2.07 per cent), auto (1.65 per cent) and capital goods

(1.61 per cent).