Sensex recovers 470 points, opens higher on value-buying

The benchmark BSE Sensex rose by over 470 points in opening trade on Wednesday, breaking its six-session long losing streak on value-buying in select blue-chips by domestic investors triggered by a recovery in global markets. The 30-share BSE index gained 470.39 points, or 1.37%, at 34,666.33 in opening trade. The broader NSE Nifty 50 also rose by 115.75 points, or 1.10%, to 10,614. 21. Out of the 30 constituent stocks on the BSE Sensex, 21 were trading in the green in the early morning session.

Banking stocks like Axis Bank, IndusInd Bank, SBI, Kotak Bank and ICICI bank were trading upwards of a percent, ahead of today’s RBI monetary policy review. All sectoral indices, including realty, metal, consumer durables and banking advanced up to 2.56%. The gauge had lost 2,087.31 points in the previous six sessions following a global rout in equities inflicted by inflation worries and imposition of a 10% long-term capital gains tax on equities. Emergence of buying at prevailing lower levels after recent losses and a better trend at other Asian markets, following overnight gains at the Wall Street helped both the key indices recover.

Caution prevailed as investors kept their positions at a low ebb amid expectations that the RBI may keep rates unchanged, brokers said. Domestic institutional investors (DIIs) made purchases worth Rs 1,699.74 crore yesterday, as per provisional data. Major gainers such as Tata Steel, Tata Motors, ONGC, IndusInd Bank, Dr Reddy’s, Maruti Suzuki, SBI, M&M, Bharti Airtel, Adani Ports, Axis Bank, Kotak Bank, Hero MotoCorp, ICICI Bank and RIL rose up to 2.14 %. Among the Asian bourses, Hong Kong’s Hang Seng was up 1.59%, Japan’s Nikkei rose 3.06%, while Shanghai Composite Index fell 0.65% in early trade today. The US Dow Jones Industrial Average ended 2.33% lower yesterday.