Ignoring caution over below normal monsoon forecast, the benchmark BSE Sensex today rebounded by 214 points to snap its five-day losing run to 27,890.13 on value-buying in bluechip stocks like Sun Pharma.
Sentiment were also buoyed after Finance Minister Arun Jaitley said GST bill will be passed in the current session of Parliament, brokers said.
Reports of below normal monsoon for the second successive year, capped the gains to some extent. Retrospective taxation concerns and corporate earnings worries also weighed on sentiments, they added.
FIIs today met Minister of State for Finance Jayant Sinha and Revenue Secretary Shaktikanta Das on the Rs 40,000-crore tax demand by the government.
"If there is any help that can be given, we will see," Sinha said. The government, however, refused to relent saying the remedy lies in judicial appeal.
Firming trend in other Asian markets and falling crude prices overseas, after Saudi ended its military action in Yemen have a positive impact, trades said.
In volatile movements, the 30-share BSE barometer gained over 151 points in early trade on value-based buying. But on reports of subdued monsoon forecast, the gauge slipped into the negative zone to touch the day's low of 27,385.48.
A flurry of buying in the last one hour boosted the index to the day's high of 27,947.26, before settling with a gain of 214.19 points or 0.77 per cent at 27,890.13.
On similar lines, the 50-share NSE Nifty, recaptured the crucial 8,400-mark by gaining 51.95 points or 0.62 per cent to close at 8,429.70.
Despite, subdued monsoon forecast, shares of Hindustan Unilever topped the Sensex gainers by surging 3.59 per cent.
Shares of Sun Pharma also made a comeback today to close 1.63 per cent higher at Rs 967.15, a day after Japan's Daiichi Sankyo sold its entire in the company for Rs 20,025 crore.
Other gainers on the Sensex included, L&T 3.29 per cent, Axis Bank 3.19 per cent, Dr Reddy's 3.04 per cent, M&M 2.03 per cent, Tata Power 1.61 per cent and HDFC 1.60 per cent.
However, shares of Wipro plunged over 6 per cent to Rs 544 after company's earnings failed to enthuse investors.
Sectorally, the BSE capital goods gained the most by rising 1.88 per cent, followed by healthcare 1.20 per cent, Banking index 0.78 per cent and FMCG 0.52 per cent.
The market breadth was largely flat as 1,382 stocks ended in red, 1,359 finished in green while 131 ruled steady. The total turnover fell to Rs 3,512.10 crore from Rs 4,021.67 crore yesterday.
