There was some relief for investors as stocks rebounded on Tuesday following buying in banking, pharma and FMCG companies.
The positive finish, that saw the benchmark BSE Sensex ending 347 points higher, came amid the LIC chairman’s assurance that the insurer will not allow the troubled IL&FS to collapse even as there are expectations that the Reserve Bank may also step in with some liquidity support measures.
While the Sensex closed higher at 36652.06, trading during the day was volatile. The Sensex touched a high of 36705.79 and a low of 36064.10 during the day’s trade. Similarly, the 50-share NSE Nifty ended 100.05 points higher, or 0.91 per cent, at 11067.45 points. During intra-day trades, it moved between 11080.60 and 10882.85.
Though NBFC counters continued to face pressure as worries over liquidity persisted, there was recovery in other financials as HDFC and HDFC Bank enabled the key indices to break the five-day losing streak. Kotak Bank, Axis Bank, SBI, IndusInd Bank and ICICI Bank also finished in the green.
“After a volatile trade, the market bounced back towards close backed by renewed buying in financial and pharma stocks. Continued weakness in the rupee invited investors’ attention towards export-oriented sectors,” Vinod Nair, head of research at Geojit Financial Services, said.
