Stocks stage dramatic recovery, Sensex up 490 points above 39,000 level

Equity benchmark indices rebounded during the second half of the trading session on Wednesday after moving in a narrow range in the early hours.

The S & P BSE Sensex closed 490 points higher at 39,055 while the Nifty 50 gained 150 points to close at 11,762.

Except for auto, all sectoral indices closed in the green as markets resumed fresh upward momentum with traders resorting to panic buying. However, the volumes were lacklustre.

Oil companies like ONGC, Bharat Petroleum Corporation and Indian Oil gained as oil prices retreated amid signs that global markets remain adequately supplied.

The other gainers were HCL Tech and IndusInd Bank.

Tata Motors, however, lost 5.6 per cent. FMCG major ITC, Hero MotorCorp, Grasim and UltraTech Cement were in the negative zone.

Meanwhile, Asian shares were mixed with investors remaining cautious after the United States told countries buying Iranian oil to stop purchases by May 1 or face economic sanctions.

Chinese equities moved between gains and losses as investors weighed how Beijing will slow its pace of policy easing after strong first-quarter economic growth.