BSE Sensex rebounds from four-week low

MUMBAI (Reuters) - The BSE Sensex and Nifty were trading higher on Wednesday, rebounding from a near four-week low hit in the previous session and on track to snap a five-session losing streak as blue chips such as Sun Pharmaceutical Industries rose on value buying.

Sentiment was also buoyed as markets across the region were trading higher with stimulus-fueled Chinese shares taking the lead, while oil sagged after Saudi Arabia ended its military campaign in Yemen, easing tensions in the energy-rich Middle East.

However, concerns over retrospective taxation on foreign portfolio investors and worries about corporate earnings capped the gains, traders said.

 

"Shares are likely to be traded in a range. Markets are oversold, and people are expecting a bounce. But overseas investors are concerned about the taxation and other macro issues," said Suresh Parmar, head, institutional equities at KJMC Capital Markets.

The BSE Sensex was up 0.36 percent at 27,775.83, while the Nifty added 0.16 percent at 8,390.95.

Sun Pharma shares rose 2.7 percent on value-buying after they plunged 8.8 percent in the previous session on Daiichi Sankyo's <4568.T> $3.6 billon share sale in the company.

Reliance Industries , which fell 5.5 percent in the last two sessions, gained 0.5 percent.

Century Textiles rose 8 percent after Reuters reported, quoting sources, that ITC Ltd , the country's largest cigarette maker, is in talks with the company to buyout its paper division.

However, Wipro Ltd fell 4.1 percent after India's third-biggest software services exporter reported a 2 percent rise in quarterly profit on Tuesday.

(Reporting by Indulal PM; Editing by Subhranshu Sahu)