Sensex spurts 470 pts on banks support

Indian equities staged a strong comeback after two days of decline, with the flagship BSE Sensex surging by nearly 470 points to end at 33,066 as participants accumulated recently beaten-down banking, metal and consumer durable stocks.

The broader Nifty followed suit and went past the crucial 10,100 level.

Also, strengthening rupee against the dollar fulled the uptrend.

Markets benefited from value-buying in beaten-down shares and a mixed trend on Asian bourses.

Meanwhile, fears of a full-blown trade war between the US and China kept investors edgy.

European stock markets recovered slightly at the start of trading today following a worldwide slump for equities ahead of the weekend break and short covering, broker said.

The domestic market recovered from its early losses, with banking, metal, finance consumer durables, capital goods, auto, PSU and realty stocks showing strength.

The Sensex bounced back to regain the 33,000-level and touched high of 33,115.41 as Bank of Baroda, Yes Bank, SBI, HDFC Bank, PNB ICICI Bank, Federal Bank, IndusInd Bank and Axis Bank saw heavy buying, gaining up to 6.16 per cent.

The benchmark finally settled at 33,066.41, showing a gain of 469.87 points, or 1.44 per cent. This is the biggest single day gain since March 12, when it recorded a sharp gain of 610.80.

However, during the day, it had touched a low of 32,515.17.

The index had lost 539.64 points in the previous two sessions following a global sell-offs due to fears of a trade war as US President Donald Trump announced tariffs on Chinese goods.

The broader NSE Nifty reclaimed the key 10,000-mark and touched a high of 10,143.50 before finally settling at 10,130.65, showing a gain of 132.60 points, or 1.33 per cent. Intra-day, it hit a low of 9,958.55.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 1,628.19 crore, while domestic institutional investors (DIIs) sold equities to the tune of Rs 935.41 crore last Friday, provisional data showed.