Sensex Recovers From Day's Lows, Ends 514 Pts Higher, Nifty Above 17,560

The Dalal-Street staged a sharp recovery in the afternoon trade led by advances in IT, Financial and Metal stocks which sent the Sensex higher by 500 points from its day's lows. At close, the BSE Sensex was up 514.34 points at 59,005.27, while the Nifty-50 added 165.10 points to close at 17,562.00.

The 30-share pack Sensex marked gains in 24 scrips while only six counters ended in the red. Shares of Bajaj Finance topped the list as the stock jumped over five per cent in the afternoon trade, while IndusInd Bank and ITC gained more than four and three per cent respectively. On the flipside, stocks from auto pack ended in the red as investors continue to trade cautiously in the sector amid chip crisis. Maruti Suzuki was down over two per cent, while Bajaj Auto ended down over a per cent.

All major sectors witnessed buying interest after a profit booking session on Monday. The Nifty IT and Nifty Metal sectors supported the markets the most in the rally today as the sectors added around two per cent each. Gains in the IT pack were mainly led by shares of Mindtree (+5.57 per cent), L&T Infotech (+3.47 per cent), and COFORGE (+3.38 per cent).

In the near-term, analysts feel that the long term trend seems bullish. However, the Nifty has to sustain above 17,250 to cross higher levels of 17,850 in the coming days. If the index breaks 17,250, a correction upto 16,800 can be expected, said experts tracking the technical factors.

Ashish Biswas, Head - Technical Research at CapitalVia Global Research, believes, "If the market is able to sustain the level of 17450-17500 , market can witness higher levels of 17850,"

Overall in the markets today, around 1551 shares advanced, 1602 shares declined, and 165 shares were unchanged.

In another development on Tuesday, September 21, the BSE crossed another milestone as the exchange crossed eight crore registered investor accounts (UCC). Commenting on the same, Ashishkumar Chauhan, MD & CEO, BSE, said, "Equity investments whether directly or through Mutual funds is gaining ground over last 1.5 years due to variety of reasons across the world. India is also following the world trend."

Ruchit Purohit

BW Reporters The author is a Trainee Journalist at BW Businessworld based in Mumbai. He tracks the Markets and related news.