Sensex recovers 148 points in early trade on value buying

Mumbai: The benchmark BSE Sensex rebounded over 148 points and the NSE Nifty regained the 7,700-mark in early trade on September 7, on value-buying by investors in select blue-chips. Besides, covering-up of short positions by speculators supported the recovery, brokers said.

The 30-share index was trading higher by 148.11 points, or 0.59 per cent, at 25,350.01, with consumer durables, realty, auto, banking, IT and FMCG sector stocks leading the recovery. The gauge had lost 562.88 points in the previous session to close at nearly 14-month lows amid lacklustre global cues following caution over US payrolls data.

On similar lines, the NSE Nifty reclaimed the 7,700-mark by recovering 50.00 points, or 0.65 per cent, at 7,705.05 in early trade. Brokers said value-buying in recently beaten down select blue-chip stocks along with covering-up of short positions by speculators influenced trading sentiments. Furthermore, a moderate recovery in Chinese shares on the first day of trade after an extended holiday weekend, influenced trading sentiments, they said.

Among Asian markets, Japan's Nikkei rose 0.55 per cent, while Shanghai Composite index up 0.77 per cent in early trade today. Hong Kong's Hang Seng index was trading 0.13 per cent down. The US Dow Jones Industrial Average fell 1.66 per cent on Friday.