Both the benchmark indices — S&P BSE Sensex and CNX Nifty — snapped their 3-week losing streak and recovered by 802 points and 245 points, respectively on fresh buying on the back of positive global cues.
Small-cap and mid-cap counters too attracted heavy buying interest from retail investors as their indices out-performed the Sensex.
Besides, resumption of foreign capital inflows boosted market sentiments.
“Firm global cues combined with oversold positions in index majors triggered the rebound,” said Jayant Manglik, President, Retail Distribution, Religare Securities.
Reduction in crude oil prices and improvement in F&O liquidity, post a poor March expiry (-7 per cent return) provided the essential, said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services.
Cut in petrol and diesel prices was another reason behind rise in the value of shares.
The Sensex opened higher at 27,655.79 and hovered in a wide range of 28,298.34 and 27,624.76 before concluding at 28,260.14, witnessing a sharp recovery of 801.50 points, or 2.92 per cent.
It had dropped by 1,990.31 points, or 6.76 per cent, in the previous three weeks.
The CNX 50-share Nifty also rose by 244.85 points, or 2.94 per cent, to close at 8,586.25.
It had dropped by 596.35 points, or 6.67 per cent, in the previous three weeks.
Meanwhile, Foreign Portfolio Investors (FPIs) bought shares worth Rs 487.73 crore, according to Sebi data.
In the overseas markets, European stocks were trading higher after a solid round of Eurozone manufacturing data for March.
27 scrips out of the 30-share Sensex pack ended higher while only three finished lower.
Stock markets remained closed on April 2 for “Mahavir Jayanti” and April 3 for “Good Friday.”
Major gainers were Bharti Airtel (6.86 per cent), Sun Pharma (6.72 per cent), HDFC (5.71 per cent), Tata Motors (5.38 per cent), ITC (4.79 per cent), Coal India (4.43 per cent), Axis Bank (4.31 per cent), Dr Reddy’s Lab (4.11 per cent), SBI (3.76 per cent), HUL (3.68 per cent), Larsen (3.42 per cent), Tata Power (3.26 per cent), Hero Motocorp (3.25 per cent), Wipro (3.15 per cent), Tata Steel (2.86 per cent), Reliance Ind (2.81 per cent), ICICI Bank (2.70 per cent) and Cipla (2.25 per cent).
Among the S&P BSE sectoral indices, Healthcare rose by 4.32 per cent, Realty (3.74 per cent), Bankex (3.37 per cent), PSU (3.35 per cent), Auto (3.30 per cent), FMCG (3.28 per cent), Capital Goods (3.19 per cent) and Oil & Gas (2.57 per cent).
Small-cap and Mid-cap indices also rose by 6.76 per cent and 3.77 per cent, respectively.
The total turnover at BSE and NSE dropped further to Rs Rs 8,236.17 crore and Rs 47,640.57 crore, respectively as against the last weekend’s level of Rs 16,906 crore and Rs 87,594.44 crore.