Stock markets on Monday made a smart comeback with the Bombay Stock Exchange bellwether Sensex snapping four-day losing streak and ending with a gain of 268 points, on value buying in heavy weights like Reliance Industries and ICICI Bank.
The BSE 30-share benchmark index, Sensex, which plunged by over 4 per cent in the last four trading sessions primarily on the housing finance racket and negative global cues, started the week on a firm note and settled at 19405.10, reflecting a jump of 268.49 points or 1.4 per cent.
Witnessing a similar surge, the National Stock Exchange's wide-based Nifty finished the day with a gain of 1.36 per cent at 5830. Analysts attributed the market rebound to the emergence of bargain hunting following the steep fall in the Sensex in the last four trading sessions.
“Last week's weakness in the market gave an opportunity to buy frontline stocks at attractive valuations.
Besides, the concerns over 2G spectrum row and housing loan racket have been almost factored in by the market,” Networth Stock Broking Head of Institutional Business Prakash Diwan said.
Rally on the BSE was led by a handsome bounce back in Mukesh Ambani led Reliance Industries, which carries the maximum weight in the Sensex.
“Value buying by large institutional investors triggered the up-move in the stock,” Mr. Diwan said.
Of the 30 Sensex components, just seven ended on a weak note.
Rupee loses 9 paise
The rupee on Monday lost nine paise to close at 45.93/94 against the dollar due to month-end demand for the U.S. currency from importers. At the interbank foreign exchange, the rupee opened higher at 45.80/81 in tune with a surge in stock markets. It had closed at 45.84/85 on Friday last.
Forex dealers said month-end dollar demand from importers, mainly oil refiners, put pressure on the rupee value though the stock markets were rising.
The rupee finally ended at 45.93/94.
Meanwhile, global crude oil was trading above $85 a barrel in London.