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The BSE Sensex snapped its two-day decline and gained over 265 points on buying in fundamentally strong stocks like RIL and Infosys, as fall in crude oil prices and lower-than-expected inflation improved the market sentiment.
The Bombay Stock Exchange benchmark index Sensex, which had lost 295 points in the last two sessions, bounced back by 265.39 points to 18,439.48.
The broad-based National Stock Exchange index Nifty jumped by 86.05 points to 5,531.50 on the back of a fresh rise in the two most heaviest-weighted stocks of Reliance Industries and Infosys Technologies.
Reliance rose to a two-month high, gaining Rs 26.05 to Rs 1,017.65 as lower cost of crude improved the prospects of its profitability. Infosys, the largest software exporter, rose Rs 44.80 to Rs 3,099.25. The two stocks carry nearly 23 per cent weightage on the 30-stock barometer Sensex.
Inflation rose only marginally to 8.31 per cent during February from 8.23 per cent in the previous month. Brokers said it was lower than the projections and reduced the worries of a steep hike in interest rates that hit corporate profits.
They said crude oil declined to the lowest level in two weeks on anticipation that the earthquake in Japan will reduce the demand for the time being.
Indian Oil, the largest refiner, rose Rs 4.70 to Rs 309.90, Bharat Petroleum up by Rs 23.85 to Rs 570.50 and Oil India gained Rs 9.35 to Rs 1,280.10.
The Oil and Gas sector index gained the most by rising 2.24 per cent to 9,936.95, followed by the Metal sector index by 2.01 per cent to 15,676.33 as Tata Steel rebounded from a six-month low.
The IT index rose 1.48 per cent to 6,240.78, Banking index 1.36 per cent to 12,358.31, Power index 1.27 per cent to 2,586.58 and Teck index by 1.26 per cent to 3,642.93.
In the 30-BSE index components, 25 stocks closed with gains, four ended with losses while BHEL remained unchanged at Rs 1,974.70.
As the buying pressure spread over a wide front, the mid cap index rose 0.49 per cent to 6,561.48 and small cap index 0.26 per cent to 7,920.72.
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