Sensex rebounds 236 pts on value buying, positive Asian cues

Mumbai: Recovering from nearly 8-month lows, the benchmark BSE Sensex gained over 236 points in early trade today, snapping its 6-session losing streak, on the back of a rebound in blue-chip stocks following value buying and positive cues from other Asian markets.

The mood also brightened after MSCI deferred inclusion of China A stocks to its benchmark indices, rather choosing to sort out regulatory issues, which triggered buying by foreign funds.

The 30-share index, which had lost 1,367.74 points in the previous six straight sessions due to RBI’s cautious stance on inflation and revival, and the spectre of drought, recouped 236.54 points, or 0.89 per cent, at 26,717.79.

Buying in stocks of realty, consumer durables, capital goods, healthcare and banking boosted trading sentiment.

Also, the NSE Nifty pulled back 71 points, or 0.89 per cent, at 8,093.40.

Brokers said value-based buying in blue-chips after recent losses amid a firming trend in other Asian markets helped.

Among other Asian markets, Hong Kong’s Hang Seng was up by 0.23 per cent while Japan’s Nikkei gained 0.38 per cent in early trade.

The US Dow Jones Industrial Average, however, ended 0.01 per cent lower in yesterday’s trade.

PTI