Mumbai, March 16 (IANS) A benchmark index for Indian equities markets advanced over one percent Wednesday, taking cues from the rebound in other Asian markets on bargain buying.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened higher at 18,263.68 points after shedding 272 points on the previous day.
The benchmark Sensex ended the day at 18,358.69 points, up 1.05 percent or 191.05 points from the previous close of 18,167.64 points.
At the National Stock Exchange (NSE), the S&P CNX Nifty closed 1.13 percent or 61.50 points higher at 5,511.15 points.
On the broader markets, the BSE midcap ended 1.37 percent higher at 6,556.45 points and the BSE smallcap closed 1.26 percent up at 7,889.62 points.
There was a good buying support in banking, realty, power and consumer durables stocks. These scrips had fallen sharply Tuesday on speculation of interest rates hike by the country’s central bank as inflation remains stubbornly high.
Inflation rose to 8.31 percent in February from 8.23 percent for the month before. Most experts believe the Reserve Bank of India will hike key policy rates by 25 basis points further in its policy review meet Thursday.
All the sectoral indices closed in the positive. The BSE realty index advanced 2.47 percent at 2,104.51 points and the BSE Bankex rose 2.15 percent at 12,438.34 points. The BSE consumer durables also closed with a gain of nearly two percent.
The country’s largest lender State Bank of India and the largest private lender ICICI Bank climbed over three percent. State Bank of India closed 3.10 percent higher at Rs.2642.85 and ICICI Bank rose 3.03 percent at Rs.1026.60.
Other major gainers on the Sensex were: Reliance Infra, up 5.17 percent at Rs.645.30; DLF, up 2.44 percent at Rs.226.50; TCS, up 2.36 percent at Rs.1,115.50; and Mahindra and Mahindra, up 2.34 percent at Rs659.40.
Major Sensex losers were: Hindustan Unilever, down 1.15 percent at Rs.271.35; Hindalco Inds, down 0.56 percent at Rs.203.10; Cipla, down 0.52 percent at Rs.296.05; and Hero Honda, down 0.22 percent at Rs.1,517.45.
Other Asian markets also rebounded. The Japanese Nikkei average rebounded 5.68 percent on bargain buying after heavy selling over the past two days amid concerns of a nuclear meltdown following last week’s devastating earthquake and tsunami.
Hong Kong’s Hang Seng closed 0.10 percent higher at 22,700.90 points and China’s Shanghai Composite rebounded 1.19 percent at 2,930.80 points.
However, most European markets were in the red. Around mid-day, the French CAC 40 was trading 0.41 percent down and the Britain’s FTSE 100 was down 0.57 percent. The German DAX was ruling 0.36 percent higher.