Shares rebound on bargain hunting; Nifty up 107 pts

Markets staged a strong recovery after plunging sharply overnight on frenzied buying activity across heavyweights amid smart pullback in rupee, with the benchmark CNX Nifty rallying by a healthy 107 points on the National Stock Exchange (NSE).
Technology, financials, healthcare, energy, auto, metal and capital goods counters spearheaded the upsurge.
Trading sentiment also got a boost after the central bank intervened aggressively to support the battered domestic currency.
Furthermore, the RBI decision to partially relax some of the restrictions imposed last month on capital outflows, including allowing Indian companies more leeway if they are raising funds via external commercial borrowings amid easing fears of capital control, also helped to generate optimism.

After a shaky start weighed down by rupee volatility against the backdrop of looming credit downgrade by ratings agencies and lacklustre overseas cues, the key index swiftly regained its strength on back of heavy short-covering led rally and supported by a sharp recovery in rupee. It maintained the buoyancy throughout the session to close comfortably above the 5,400 mark.
The pullback illustrates investors' confidence in India's fundamentals despite some setback in growth scenario. Investors are also hoping for more market friendly steps from the Reserve Bank of India under Raghuram Rajan, traders said.

Among other Asian and emerging market peers, equities ended mixed amid heightened geopolitical tensions on renewed concerns over US military intervention against Syria despite encouraging macro data from Japan and China.

The 50-share index swung between a high of 5,460.25 and a low of 5,318.90 before ending at 5,448.10, registering a sharp spike of 106.65 points, or 2 per cent over its last close.
Ranbaxy, BHEL, JP Associates, Lupin, Tata Motors, Indusind Bank, ICICI Bank, Bharti Airtel, Dr Reddy and Hindalco were among the smart movers from Nifty bunch. Notable losers included DLF, ITC and Maruti.
Turnover in the cash segment dropped to Rs 11,141.35 crore from 11,400.89 crore yesterday. A total of 5,850.32 lakh shares changed hands in 60,30,322 trades. The market capitalisation stood at Rs 58,57,409 crore.