Sensex takes sigh of relief, recoups 291 points after mega plunge

Mumbai: After correcting severely on August 24, Indian market staged a smart recovery today as the benchmark BSE Sensex spurted by 290.82 points to 26,032.38 on value- buying in realty, metals and banking stocks amid hopes that government might convene a session for passage of GST bill. Moreover, recovery in rupee, which sharply appreciated by 76 paise to 65.89 intra-day against the dollar also supported sentiment, brokers said.

Trading in a wide range of 826.35 points during the day, the index managed to reclaim the 26,000-level after falling to its lowest since August 8, 2014, clocked in previous trading. The BSE Sensex, which opened in the positive zone rallied to touch day's high of 26,124.83 briefly, but slipped into the negative zone as selling pressure re-emerged and fell to a low of 25,298.42. However, towards the middle of the day, it staged another comeback to close the session 290.82 points or 1.13 per cent higher at 26,032.38.

In the previous three sessions, the index lost 2,190.08, including yesterday's biggest-ever fall of 1.624.51 points. The NSE Nifty index also jumped 71.70 points or 0.92 per cent to end at 7,880.70. Intra-day, it reclaimed the 7,900 mark to touch a high of 7,925.40 and a low of 7,667.25. Equity brokers said sentiments got a boost after the government said, to pass key reform bills, including GST, it might reconvene the Monsoon Session.

Market volatility was also high in view of August month expiry in the derivatives segment on Thursday. Among 30-Sensex stocks, 22 ended with gains led by Vedanta, Tata Motors, Coal India, ICICI Bank, Axis Bank, NTPC, Tata Steel, GAIL, SBI, RIL, BHEL, Dr Reddy's and Hindalco. Barring IT, all the BSE sectoral indices notched up gains led by realty, metal, oil& gas, PSU and banking.

Retail investors pumped money into mid-cap and small-cap shares with respective indices rising up to 1.99 per cent. Globally, most Asian bourses closed mixed with Chinese equities sliding by 7.63 per cent. A higher opening was seen in European markets.