BSE Sensex gains, NSE Nifty rebounds from 1 1/2 month closing low as blue chips lead recovery

Written by Agencies | Mumbai | Updated: May 8 2014, 20:12pm hrs
Indian Stock MarketBSE Sensex rose by 88.71 points with metal, healthcare, realty and power sector stocks leading the recovery. (AP)
The NSE Nifty is trading higher, recovering slightly from a 1-1/2 month closing-low posted on Wednesday.

Blue chips lead the recovery, tracking higher Asian shares after dovish comments by the Fed's Janet Yellen and upbeat Chinese trade data.

Shares in Bharti Airtel gain 1.1 per cent after falling 7.9 per cent since April 29 as the company's earnings disappointed some investors.

However, caution is expected to prevail ahead of the general elections outcome due on May 16.

Overseas investors sold index futures worth 5.12 billion rupees ($85.25 million) while their cash shares purchase was at 1.19 billion rupees on Wednesday, provisional exchange data shows.

The BSE Sensex was trading up more than 80 points while the Nifty gained over 20 points as of 11:11 a.m.

BSE Sensex up 89 points in early trade on global cues

The benchmark BSE Sensex recovered nearly 89 points in early trade today on emergence of buying by funds and retail investors amidst a firming trend in global markets after Federal Reserve Chief Janet Yellen's upbeat outlook on the US economy.

The 30-share index rose by 88.71 points, or 0.40 per cent, to 22,412.61 points with metal, healthcare, realty and power sector stocks leading the recovery. The index had lost 184.52 points in yesterday's trade.

The National Stock Exchange index Nifty moved up by 25.10 points, or 0.38 per cent, to 6,677.65.

Brokers said fresh buying by funds and retail investors, triggered by a better trend at other Asian bourses following overnight gains in the US markets on upbeat comments from Fed chief on the economy, influenced the trading sentiment here.

US Fed Chief told Congress that the economic outlook was positive and that the stimulus taper would continue steadily.

Among other Asian markets, Hong Kong's Hang Seng rose by 0.36 per cent, while Japan's Nikkei was up by 1.09 per cent in early trade today.

The US Dow Jones Industrial Average gained 0.72 per cent in the previous session.