Markets rebound on macro boost, global cues

Mumbai: BSE Sensex on Tuesday recovered over 207 points to close at 37,852, reversing two sessions of losses, while the broader NSE Nifty settled above the 11,400-mark on flurry of buying in healthcare, realty and banking counters on positive macroeconomic data and signs of recovery in global markets.

Domestic market sentiment was buoyed by July inflation numbers. Wholesale inflation eased to 5.09 per cent in July on account of cheaper food articles, from 5.77 per cent in June.

Retail inflation also fell to a nine-month low of 4.17 in July. Global equity markets regained confidence as the threat from the Turkish lira crisis ebbed.

Unabated buying by domestic institutional investors (DIIs) and robust corporate Q1 earnings by some blue-chip firms also drove investors sentiment, brokers said. Mixed trend on Asian bourses and higher opening in European markets also supported the upmove, they added.

The 30-share Sensex, after opening on a strong note, continued its upward march to hit a high of 37,932.40 on value-buying in recent losers.

It lost some ground on profit-booking, before finally ending 207.10 points, or 0.55 per cent, higher at 37,852. The gauge had lost 379.47 points in the previous two sessions.

The NSE Nifty, after touching a high of 11,452.45, ended 79.35 points, or 0.70 per cent, higher at 11,435.10.

Domestic institutional investors (DIIs) bought shares worth a net Rs 216.29 crore while foreign portfolio investors (FPIs) sold shares worth a net Rs 971.86 crore on Monday, provisional data showed.

Sun Pharma was the best gainer among Sensex components by surging 6.91 per cent after the company on Tuesday reported a consolidated net profit of Rs 982.51 crore for the quarter ended June 30.

Yes Bank, RIL, ICICI Bank, Axis Bank, Tata Steel, HUL, Coal India, Bajaj Auto, Maruti Suzuki, Kotak Bank, IndusInd Bank and ONGC were among the top gainers. Whereas Hero Motocorp, Adani Ports, L&T, Bharti Airtel, Vedanta and NTPC were among the major losers.

Sectoral indices led by healthcare, realty, energy, banking, finance, FMCG, auto, consumer durables, IT, Oil and gas and metal gained up to 2.48 per cent. Stock exchanges will remain closed tomorrow on account of Independence Day.