Sensex rebounds by 217 points; IT, teck shares major gainers

The Bombay Stock Exchange (BSE) benchmark Sensex today bounced back by 217 points as easing political concerns and softening crude prices lifted buying sentiment.

The 30-share Sensex opened on a strong note on a slew of positive trends on domestic and global front and sustained the buying momentum to close 216.98 points, or 1.19%, higher at 18,439.65 points.

The National Stock Exchange's Nifty too rebounded by 57.65 points, or 1.06%, to settle at 5,520.80 points.

Markets had nosedived yesterday with fresh political crisis emerging with UPA ally DMK announcing pull out of its ministers from the central government.

Brokers attributed the rise today to many positive cues including easing political crisis.

"Markets ended up, amid stability in global markets and softening crude Prices. IT stocks saw buying as stability in global markets improves the outlook for the industry.

"Financials also performed amid positive developments for the sector like proposed capital infusion in few PSU Banks, lowering Bond Yield," Motilal Oswal Securities manager and analyst Bhavin Desai said.

Dravida Munnetra Kazhagam (DMK) putting on hold resignation of its six ministers from the Congress-led UPA government at the Centre  also helped the buying sentiment.

Market participants said that the fall in global crude oil prices, which was the main weighing factor on the market, as well as firm global trends supported the local bourses.

IT stocks rose as recent strong US economic data showed a recovery in economy.

They also said that the next trigger will be the announcement of fourth quarter results in the month of April.

The BSE teck index gained the most among sectoral indices rising by 1.98%. The IT index rose by 1.90%, after heavyweight Infosys gained 2.53%. The BSE metal index gained 1.49%, while the bankex by 1.48%.

Among the 30 Sensex stocks, 25 scrips closed with gains while four ended in losses and HUL held steady.

Bharti Airtel was the top gainer with a rise of 3.16% followed by Tata Motor (2.91%) and ONGC (2.%). Jaipra Associates jumped by 2.37%, Tata Steel by 1.94% and DLF by 1.%.

The total market breadth turned positive as 1,777 stocks gained ground while 1,059 that finished with losses on the BSE. The total market turnover improved to Rs2,874.88 crore from Rs2,442.57 crore yesterday.

Asian stocks ended higher on low level buying after recent fall. The key indices in Hong Kong, Japan, South Korea, Taiwan, China and Singapore closed up between 0.15 and 1.71%.

European markets were trading marginally higher in their afternoon deals. The CAC was up by 0.27%, the DAX by 0.66% and the FTSE by 0.28%.