Mumbai: The market rallied over 1.5 per cent in the second half of the day, snapping three-day losing streak on Wednesday. Rally in technology, private banks, oil & gas, metal and auto lifted the 50-share NSE Nifty above the 5,000 mark and shrugged off rise in August inflation numbers. The index shot up 71.60 points to 5,012.55 and the 30-share BSE Sensex jumped 242.16 points, to close at 16,709.6.
Senior portfolio manager Punita Kumar Sinha of Blackstone Group believes Indian market is in a better position compared to the developed markets.
European markets too were quite supportive; they were trading 0.7-1.2 per cent higher. There were reports that Angela Merkel (German Chancellor), George Papandreou (Greek PM) and Nicolas Sarkozy (French President) will hold conference call today to get further political support for Greece.
The Indian rupee, which saw huge depreciation, managed to recover partly in today's trade from the near-two-year low of 48.02 per dollar hit earlier, as local shares rebounded and the euro pulled back.
"FII outflow a trigger for the depreciating rupee,” Sinha evaluated. It was trading at 47.7 per dollar.
In the economic data, Inflation for the month of August has come in higher-than-expected at 9.78 per cent as food and fuel prices continue to soar. This was significantly higher than the July inflation of 9.22 per cent. A CNBC poll of market analysts had pegged August inflation at 9.6 per cent.
Sharp depreciation in rupee pushed technology stocks sharply higher; the respective index surged 4.27 per cent. Infosys ended up 6 per cent. Meanwhile, HCL Tech and Wipro rose 4 per cent each; TCS gained 2 per cent.
All sectoral indices closed in the green barring capital goods. The BSE Metal, Bank, Oil & Gas, FMCG and Auto indices were up 1-2 per cent.
Reliance Industries pushed the market higher in the late trade; the stock rose 1.9 per cent. ONGC too went up 1 per cent.
BHEL bounced back in the trade as well; the stock shot up 2.6 per cent while L&T lost 1.6 per cent. Jaiprakash Associates was the biggest gainer; the stock climbed 6.5 per cent.
Private banks stocks too led the support; HDFC Bank and ICICI Bank were up 1-2 per cent. Axis Bank surged 3.6 per cent.
Among other largecaps, SAIL, Tata Steel, HUL, JSPL, Tata Motors and Maruti Suzuki moved up 2-3 per cent.
However, Bharti Airtel lost 1 per cent. SBI and HDFC too were marginally in the red.
The broader indices closed moderately in green; about Total traded turnover was more than Rs 1.44 lakh crore.
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