Mumbai: The market benchmark Sensex on Wednesday recovered from over one-month lows by rising 104.20 points to 27,563.43 as investors preferred to create positions in IT, capital goods and auto stocks ahead of F&O expiry on Thursday.
BSE Sensex managed to end four-day losing streak, in which it had lost close of 1,050 points, as market found immediate support in the continuing fall in crude prices.
Oil fell for a sixth day today to USD 53.06 per barrel. Moreover, experts hoping that an imminent rate hike by the
US Fed this year will have a minimal impact on emerging markets, including India, supported the upside. "This is evident from the hike in global bond yields, the appreciation of the dollar and the sharp fall in commodities,"
said Vinod Nair, Head-Fundamental Research at Geojit BNP Paribas Financial Services.
Sill, some investors remained cautious ahead of the US Fed FOMC meet outcome which is expected to come tonight.
The BSE 30-share barometer resumed higher and improved further to a high of 27,609.29 before falling back to a low of 27,470.09. It finally, closed at 27,563.43 a gain of 104.20 points or 0.38 per cent.
Among the 30-Sensex constituents, 20 shares ended higher. The broad-based NSE Nifty also ended higher by 38.05
points or 0.46 per cent to 8,375.05. Intra-day, it shuttled between 8,381.50 and 8,338.45.
Covering-up of outstanding short positions by traders in view of tomorrow's July's month expiry in the derivatives
segment too supported the recovery. Asian stocks closed mixed with upward bias. Shanghai index rebounded 3.44 per cent after three sessions of losses.
European markets were too higher in late morning deals. Back home, stocks of Tata Steel and Hindalco were back in
demand and rose up to 0.95 per cent as prices of industrial metals recovered in global markets.
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