Indian equity indices rebounded after two straight days of loss and closed with huge gains on Thursday. Strong quarterly results of companies and positive cues from Asian markets aided the surge in stock prices.
The 30-share Sensex of Bombay Stock Exchange (BSE) added 387.92 points, or 2.61%, to close at 15,231.04 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) was up 124.85 points, or 2.84%, to end at 4,523.75 points.
Domestic markets opened with positive gap and remained upbeat during the trading session, led by some inflows from retail investors and foreign funds. Trading briefly turned volatile after inflation data was released but intense buying during the final hours of the session led the benchmark indices to close higher. Inflation stood at -1.17% for the week ended July 11compared to -1.21% for the previous week, marking a sixth straight week fall. Dealers in the markets said there was buying across the board by the foreign institutional investors (FIIs) and domestic institutional investors (DIIs). Manish Sonthalia, fund manger at Motilal Oswal Securities, said, ?We had seen some profit-booking in the last two trading session. However, announcement of some strong quarterly results boosted the sentiments of the markets. There was some buying in realty and metal stocks.?
As per the provisional figures given by the BSE, FII were net buyers at Rs 511.94 crores while DII were net sellers at Rs 34.16 crores.