After plunging nearly 200 points in early trading, the BSE benchmark Sensex staged a 300-point intra-day rally on Thursday to close with a 95-point gain, extending its winning run to the third day after the BSP said it would support foreign direct investment in retail in the Rajya Sabha on Friday.
The Sensex rebounded about 300 points to end at 19,486.80 — a rise of 94.94 points or 0.49 per cent — on buying in Tata Motors, Sterlite, Bajaj Auto, Reliance Industries and HDFC. The broader NSE index rose 0.52 per cent, or 30.40 points, to end at 5,930.90.
Shares were down for most of the day before rebounding on news the BSP, which had abstained in the Lok Sabha voting, would support the government’s move to allow FDI in retail, which may help tilt the vote in the government’s favour. Shares fell on profit-booking after the index had gained over 5 per cent in the previous nine sessions since the start of the winter session of Parliament.
Gains were led by a rebound in rate-sensitive stocks such as ICICI Bank on hopes of traction in pension and insurance bills after FDI in retail gets cleared.
Shares of many retail companies gained further. Shares of Provogue India gained 6.67 per cent, while Koutons Retail India was up 4.94 per cent on the BSE. Shoppers Stop also ended 0.95 per cent up, Pantaloon Retail rose by 0.55 per cent. Shares of Trent, however, fell 0.08 per cent.