Equities rose for the first time in four days to recover from a over two-week low, tracking global markets after crude prices jumped sharply on signals that the Federal Reserve will be cautious in raising US interest rates.
Market benchmark Sensex recovered by 115 points to end at 24,338.43 on value-buying in recently beaten-down stocks.
Statement by Union Minister Venkaiah Naidu expressing hope that key reform bills including GST and bankruptcy will get passed in the Budget Session beginning February 23, also perked up the market mood.
In addition, the rupee rising by more than half a rupee against the dollar also supported the recovery.
Indexes in Asia and European logged smart gains as speculations that the US is likely to maintain status quo on rates this year pushed up oil prices in Asian trade.
But concerns over muted quarterly results remained, brokers said. “The uptick in crude hasn’t lifted the domestic sentiment since investors are stepping into a conservative mode. The focus has now shifted to budget,” said Vinod Nair, Head- Fundamental Research, Geojit BNP Paribas.
Aviation stocks tumbled after sharp rebound in crude. Jet Airways plunged 5.57 per cent, SpiceJet fell 8.33 per cent and InterGlobe Aviation tanked 4.40 per cent.
In the broader markets, the 30-share Sensex swung widely on alternate bouts of buying and selling, before settling at 24,338.43, higher by 115.11 or 0.48 per cent. Intra-day, it moved between 24,514.01 and 24,224.74.
The gauge had lost 647.37 points in the previous three days on sustained foreign fund outflows amid global rout on concerns over slowing growth after oil prices resumed slide.
The NSE Nifty reclaimed the crucial 7,400-mark by recovering 42.20 points or 0.57 per cent to 7,404.
In overseas stock markets, Asian and European stocks edged higher as weaker-than-expected US service-sector data pushed the US dollar to its lowest level against a basket of currencies in three months, sparking gains for commodities.
Key indexes in Asia, like China, Hong Kong, Singapore, and South Korea firmed up by 0.35 per cent to 1.35 per cent while Japan’s Nikkei moved down by 0.85 per cent. Taiwan market remained closed today.
In European, indexes like France, Germany and the UK moved up between 0.04 per cent and 0.61 per cent.