The BSE Sensex rose 1.1 per cent, or 346 points, to close at 33,106.82. The index had shed 1.7 per cent over the previous three sessions. The NSE Nifty
50 gained 97 points, or 1 per cent, to close at 10,215, above its 50-day moving average. Brent crude prices, after nearly $65 a barrel level, have retreated and are currently trading around $61 a barrel.
Reliance Industries, which derives the bulk of its profits from refining and petrochemicals, rose 2.3 per cent as crude oil steadied after its recent decline. Infosys and State Bank of India surged 3.9 per cent and 2.5 per cent, respectively, and were the biggest index gainers. The rebound in India was supported by gains in Asian stocks.
“Bargain-hunting in index heavyweights fueled a sharp surge in the domestic indices. The rapid pace of the recapitalisation process has kept the PSU bank stocks buoyant. Meanwhile, the steadiness in oil prices
on hopes of an extended output deal buoyed the global markets,” said Anand James, chief market strategist, Geojit Financial Services.
Public sector banks Bank of Baroda, Punjab National Bank, and Union Bank of India gained around 5 per cent each.
The India NSE Volatility Index (VIX) fell for the first time in five sessions, dropping 5.6 per cent to 13.5.
“Shares are stabilising after the sharp selloff. Markets
are closer to their near-term supports and are getting help from positive sentiment among Asian markets,” said Sageraj Bariya, vice-president of institutional sales at East India.
However, Finance Minister Arun Jaitely’s comments that “challenges arising from structural reforms could change the glide path” for fiscal consolidation saw the yields on the benchmark 10-year government security harden five basis points to 7.07, a 14-month high.