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The BSE Sensex snapped 5-session losing stint and gained 434 points to close at 19,696 on renewed all-round buying amid firm global cues as crude oil prices eased from over two year highs.
Besides, market players said investors were expecting good fourth quarter results and chose to shrug off lower industrial output numbers and fears of further hike in interest rates because of high inflation.
Meanwile, oil prices have eased nearly four dollars a barrel for the main US contract on indications that demand may soften.
Capital goods, auto, IT and banking counters attracted heavy buying interest. Mid-cap and Small-cap counters also got good support from operators and retail investors.
The 30-share Bombay Stock Exchange index, Sensex, resumed lower at 19,187.01 and dropped to a low of 19,101.63. However, it recovered to touch the day’s high of 19,737.33 before settling at 19,696.86 — a net gain of 434.32 points or 2.25 per cent from the previous close.
In the last five sessions it had tumbled 439.19 points or 2.23 per cent.
The NSE 50-share Nifty also shot up 125.80 points or 2.17 per cent to end at 5,911.50.
A smart rise in heavyweights like HDFC, ICICI Bank, Infosys Tech, L&T, HDFC Bank, ITC, RIL, TCS, Tata Motor, SBI, Hero Honda, ONGC, M&M and HUL pushed up the Sensex.
Recovery was so strong that all sectoral indices closed in the green, with capital goods, auto and banking sectors taking the lead.
“The undercurrent has improved considerably. Infosys results are likely to influence the market sentiments,” said Shanu Goel, Senior Research Analyst (Equity) at Bonanza Portfolio.
Meanwhile, IIFL head of research (India Private Clients) Amar Ambani said that investors seem to have forgotten the slow down in the industrial growth, which slowed to 3.6 per cent in February compared with 15.1 per cent expansion in same month last year.
He added, however, “Despite a truncated week, market volumes were quite impressive as compared to past two trading days. All eyes would be on Infosys quarterly numbers which will be announced on Friday.”
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