The benchmark Sensex closed higher by 341.01 points at 10,822.78 on the BSE on emergence of buying by domestic and foreign funds.
Updated at 5.00 pm
MUMBAI: After sinking dangerously for three straight sessions, the stock market looked healthy on Tuesday with the key index gaining a huge 341 points, as foreign and domestic funds purchased shares under the watchful eyes of regulator SEBI.
Foreign Institutional Investors (FIIs), which were mainly blamed for the abnormal crash, as well as domestic funds were behind today's salvage operation, having made heavy purchases. However, a few brokers continued liquidation of long positions in a bid to reduce margin pressure.
Market regulator Securities and Exchange Board of India (SEBI) also continued its surveillance and held meetings with mutual funds and stock exchange officials to take stock of trading during the day.
The market stabilised after mid-session and the Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) spurted by 341.01 points or 3.25 per cent to end the day at 10,822.78.
The Sensex had fallen by 1,736 points or 14.21 per cent in the last three sessions. In terms of correction, it had dipped from an all-time high of 12,671.11 of May 11 to the intra-day low of 9,826.91 on May 22, a drop of 2844.20 points or 22.45 per cent.
The National Stock Exchange's (NSE) S&P CNX Nifty jumped by 118 points to 3,199.35 from previous close of 3,081.35. FIIs were continued buyers in the Futures. They pumped in a huge Rs 1,914.57 crore in futures on Monday but pulled out about Rs 872 crore from cash segment.
Steel stocks were in demand in afternoon trade after a Chinese steel company announced it might hike prices. Steel Authority of India was the major gainer, with its stock trading up 14 per cent at Rs 76.40.
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