Recovery in the rupee value, Chinese exchanges and value buying in domestic stocks boosted sentiments in the Indian equity markets on Wednesday.
Bullish sentiments were seen on the S&P Bombay Stock Exchange (BSE) with its barometer 30-scrip sensitive index (Sensex) gaining over 100 points -- or 0.36 percent -- during the day's trade.
Similar positive sentiments were witnessed at the wider 50-scrip Nifty of the National Stock Exchange (NSE) which inched up 28.60 points or 0.34 percent at 8,495.15 points.
The S&P BSE Sensex, which opened at 27,851.81 points, closed at 27,931.64 points -- up 100.10 points or 0.36 percent from the previous day's close at 27,831.54 points.
The Sensex touched a high of 28,021.39 points and a low of 27,721.25 points in the intra-day trade.
According to analysts, recovery in rupee value and the Chinese markets supported the domestic exchanges in the day's trade.
Concerns had grown about the Chinese markets, after various efforts by the government, brokerage firms and mutual funds were not able to arrest the fall.
Some estimates point out that the continuous slide in the exchanges of the $10-trillion strong economy has wiped off 40-45 percent of the entire stock value in the last three months.
Though gloomy, the Chinese situation has brightened hopes of a delay in the US rate hike, the decision for which will come in the Federal Open Market Committee (FOMC) meet slated for September 16-17.
"Investors are expecting the Chinese markets crash to deter the US Fed from going in for a rate hike in September," Anand James, co-head, technical research, Geojit BNP Paribas, told IANS.
Higher interest rates in the US are expected to lead the FPIs (Foreign Portfolio Investors) away from emerging markets such as India.
"The markets are also awaiting the minutes of the last FOMC meet held on July 28-19 to be released later today. Value buying was also seen in the stocks after two days of relentless falls," James said.
The barometer index fell by 236 points during the last two sessions on the back of widening monsoon deficit, stalled reforms, sinking rupee and lowering of growth rate by global credit agency Moody's.
Other concern such as rupee depreciation was off-set by gains in export-oriented stocks like information technology (IT), pharma and fast moving consumer goods (FMCG). These sectors benefit from the Indian rupee's devaluation and fall in commodity costs.
The Indian rupee touched a new two-year low of Rs.65.44 per dollar during the intra-day trade on Wednesday. Notwithstanding the slide, the rupee gained strength later in trade and closed at Rs.65.24 per dollar.
Sector-wise, healthy buying was observed in healthcare, consumer durables, capital goods, automobile and information technology (IT) stocks. However, metals, banks, realty oil and gas and power sectors came under selling pressure.
The S&P BSE healthcare index rocketed by 470.17 points, consumer durables index zoomed by 160.37 points, capital goods index augmented by 91.65 points, automobile index gained by 90.31 points and IT index rose by 84.47 points.
On the other hand, the S&P BSE metal index plunged by 103.51 points, bank index receded by 99.01 points, realty index declined by 14.26 points, oil and gas index lost 10.24 points and power index slipped by 1 point.
Major Sensex gainers during Wednesday's trade were: Sun Pharma, up 4.32 percent at Rs.927.25; Lupin, up 2.28 percent at Rs.1,795.35; Wipro, up 2.15 percent at Rs.583.60; Hero MotoCorp, up 1.82 percent at Rs.2,690; and Cipla, up 1.79 percent at Rs.695.90.
The major Sensex losers were: Hindalco Inds, down 3.14 percent at Rs.86.30; State Bank of India (SBI), down 2.08 percent at Rs.278.05; Coal India, down 1.96 percent at Rs.356.90; Axis Bank, down 1.13 percent at Rs.554.60; and NTPC, down 0.94 percent at Rs.126.10.
Among the Asian markets, Japan's Nikkei fell by 1.61 percent and Hong Kong's Hang Seng dropped by 1.31 percent. However, China's Shanghai Composite Index gained by 1.24 percent
In Europe, London's FTSE 100 index tumbled by 0.94 percent, French CAC 40 tripped by 0.71 percent and Germany's DAX Index dropped by 1.18 percent at the closing bell here.
