Aided by healthy domestic institutional investor flows and overseas cues such as the US data and Fed minutes that reiterated hike in rates would not be before April, benchmark BSE 30-share Sensex jumped 365.89 points or 1.36% to end at 27,274.71. As per the data on BSE, domestic institutional investors pumped in Rs 289 crore into the local equities. The broader 50-share S&P CNX Nifty closed 132.50 points higher or 1.64% at 8,234.60.
Market players said that the rebound was largely on short covering and some institutional buying due to change in the negative sentiment across Europe and US. "Now that the job data substantiates the need for US rate hike, though sometime in April, shows at least US economy is improving," said an analyst with a local brokerage.
But the market still remains far below last Friday's closing levels. The Nifty remains 160 points lower as of Thursday while the Sensex is 613.20 points down.
"The markets have recovered some ground but we are still not out of the woods yet. Most market players said Nifty was likely to move in a narrow band of 8000-8400. "Nifty needs to pierce 8400 levels to mark the beginning of the pre-budget rally," said an analyst.
Shares of realty, banking, FMCG, power, auto, metal, healthcare and capital goods sectors rose on good buying support. Investors also latched upon mid-cap and small-cap shares after the recent plunge helping the broadre BSE mid-cap and small-cap indices end 1.82% and 1.79% higher, repectively.
Meanwhile Brent crude too snapped its four-day fall and managed to stay above the $50-mark at $51.12. Brent touched a low of $50.60 amid rising concerns that Opec would continue to pump oil. Market players said the falling crude was advantageous to India, as a large chunk of total imports were from crude. They expect crude to sink below the $50-mark anytime soon.
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