Banking and realty stocks helped domestic bourses post modest gains on Thursday with the benchmark BSE Sensex closing 50 points up amid a partial recovery in global markets.
The Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) moved erratically between 15,134.53 and 14,896.47 before ending the day at 14,985.70, up 49.93 points or 0.33 per cent over the previous close of 14,935.77. The index had plunged 615 points yesterday in its third-biggest fall ever.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) also firmed up by 10.50 points or 0.24 per cent to close at 4,356.35 from last close of 4,345.85.
Investors seemed cautious due to fears of withdrawals by Foreign Institutional Investors (FIIs), which were believed to be heavy sellers in emerging markets, particularly Taiwan.
Terming the recovery as a pull-back rally, market players said FIIs flows were still negative but reversal of trend in world markets provided a respite to bearish conditions.
Finance Minister P Chiambaram’s reported advice to public sector banks against raising lending rates also had some soothing effect on the market, they added.
Domestic funds, which attempted to salvage situation by injecting Rs 935 crore (provisional) during yesterday’s crash, remained net buyers at lower levels.
Bank, cement, telecom, metal and realty sectors attracted fairly good buying support. IT and auto shares, however, were under pressure.