Indian markets staged a dramatic reversal from their multi-month lows after investors stepped up buying in severely beaten down frontline stocks with the benchmark Nifty rallying by a massive 134 points on the National Stock Exchange (NSE) here.
A smart rebound in the rupee from the 20-month low also boosted sentiment.
Frantic buying were seen in stocks across the board with those from the Auto, Banking, Healthcare, FMCG, Infra counters being the top performers alongwith Realty, Energy and Tech.
Mid-cap and small-cap too made a spectacular comeback.
The government's move to defuse the ongoing tax tussle with foreign funds following the Finance Minister Arun Jaitley's announcement to form a panel to simmer the Minimum Alternate Tax dispute, predominantly scripted the recovery.
The ongoing MAT row has taken its toll on Indian markets in recent days, triggering frantic unwinding even as the rupee plunged to its lowest level in 20-months.
Fading global market turbulence and volatility in the midst recent widespread dumping of German and other eurozone government bonds alongwith easing worries over political uncertainty in the UK after the Conservative Party won the UK general elections also buoyed investors mood.
The boune back comes after three days of intense selling pressure in which the benchmark had lost nearly 275 points.
The broader 50-share index jumped by a staggaring 134.20 points, or 1.67 per cent to end at 8,191.50 after hitting a fresh intra-day high of 8,224.95.
ICICI Bank, HDFC Bank, Tata Motors, HDFC, Reliance, ITC, L&T, Axis Bank, HUL, Cipla, Infosys, Sun Pharma, Yes Bank, Kotak Bank, Maruti, Ultracemco, Dr Reddys, Bajaj Auto, Lupin, IDFC, Indusind Bank, Hindalco, BPCL, Bharti Airtel, M&M and SBI were the biggest contributors to Nifty's gains.
The notable losers included TCS, IDEA, ONGC, PNB, Bank of Baroda, Heromotoco, Asian Paints and Grasim.
Turnover in the cash segment dropped to Rs 16,758.34 crore from Rs 17,675.51 crore yesterday. A total of 7,488.04 lakh shares changed hands in 71,59,519 trades. The total market capitalisation of NSE stood at Rs 9,675,128 crore.
