Markets bounced back to halt their five-day losing run today as the BSE Sensex rebounded from nearly four-week low by rising over 214 points and Nifty recaptured the 8,400-level on value-buying in the last one hour of trading.
The bounceback came despite below normal monsoon forecast. The rupee too strengthened against dollar while gold regained its sheen on the back of wedding season demand.
After a positive opening, the barometer had slipped into the negative zone due to forecast of below normal monsoon.
A flurry of buying in the last one-hour of trading helped the BSE barometer recover from intra-day low of 27,385.48. The 30-share index touched a 27,947.26, before settling with a gain of 214.19 points, or 0.77 per cent, at 27,890.13.
Sensex had lost 1,368.40 points in the previous five sessions.
The 50-share NSE Nifty, too, closed above the crucial 8,400-level by surging 51.95 points, or 0.62 per cent, to 8,429.70. Intra-day, the gauge tumbled below 8,300-mark to a low of 8,284.70 late mid-session.
Sentiment was buoyed after Finance Minister Arun Jaitley said the GST Bill will be passed in the current session of Parliament, brokers said.
However, retrospective taxation concerns and corporate earnings worries capped the gains in a volatile session.
FIIs today met Minister of State for Finance Jayant Sinha and Revenue Secretary Shaktikanta Das on the Rs 40,000-crore tax demand by the government.
Fresh foreign capital flows into the equity market also boosted the sentiment. Foreign portfolio investors (FPIs) bought shares worth net Rs 17,488.73 crore yesterday.
In sync with local equities, the rupee also edged higher three paise to close at 62.82 after hovering in a range of 62.71 and 63.02 intra-day at the forex market.
Gold prices in the National Capital rose Rs 100 to Rs 27,200 per 10 grams on wedding season demand from jewellers. In Mumbai, the metal climbed Rs 80 to Rs 26,925 per 10 grams.
