Mkts further recover on renewed buying

Mumbai: Benchmark indices Sensex and Nifty reversed losses and closed higher for the second straight day on Wednesday following buying in energy, metal and utility stocks in the last hour of trade amid positive domestic inflation data.

The 30-share BSE Sensex rose by 267.64 points or 0.37 per cent to close at 71,822.83 points, extending gains for the second day. The index opened lower and fell further to a low of 70,809.84 points during intra-day trades. Positive inflation data helped the index recover losses and hit a high of 71,938.59 points. The broader NSE Nifty also gained 96.80 points or 0.45 per cent to end the day at 21,840.05 points.

“Nifty opened gap-down tracking the weak US markets, however, strong recovery in the select heavyweights not only pared losses but also helped the index to close around the day’s high,” said Ajit Mishra, SV-P (technical research), Religare Broking Ltd. “The domestic market staged a recovery from day’s low, buoyed by renewed buying interest in banking stocks. Improving asset quality and the government's continued focus on fiscal prudence attracted PSU banks, yet concerns lingered regarding their elevated valuations. The optimism was further supported by favourable inflation figures from the UK, contributing to a widespread recovery.”