Mumbai :Recovering from its initial slide, domestic market today bounced back from over three-month lows on the back of better-than-expected factory output data as the benchmark BSE Sensex jumped by 106 points to 25,150.35, but market mood remained muted ahead the US Fed meet.
Volatility ruled the session with the index cracking below the 25,000-level in opening deals on prevailing worries over GST bill and the imminent interest rate hike by the US Federal Reserve meeting this week.
However, industrial production growing by 9.8 per cent in October on an annual basis on the back of a robust growth in consumer products and capital goods during the festive season, provided some relief.
Meanwhile, the wholesale price index-based inflation eased for the 13th straight and read (-)1.99 per cent in November as against (-)3.81 per cent in October.
“While investors resorted to some value-buying, there seems to widespread caution ahead of the Fed’s meeting on the 16th,” said Shreyash Devalkar Fund Manager Equities BNP Paribas Mutual Fund.
The 30-share gauge after cracking below the 25,000-mark to scale the day’s low of 24,867.73 in early deals, bounced back to wipe off earlier losses on value-buying in several blue-chip stocks and hit a high of 25,194.15 before ending 105.92 points or 0.42 per cent higher at 25,150.35.
The gauge had lost 207.89 points in the previous session on a likely US rate hike and persistent GST concerns, while a fall in carmakers’ shares added to the rout.
On similar lines, the NSE Nifty, which dipped below the 7,600-level intra-day to hit a low of 7,551.05, finally ended 39.60 points or 0.52 per cent higher at 7,650.05 after the day’s high of 7,663.95.
Metal stocks were back in limelight after the government on Friday imposed anti-dumping duty of up to 57.39 per cent on import of certain stainless steel products from China, Korea, the US and EU for five years to save the domestic industry from cheap shipments.
Hindalco, Tata Steel and Vedanta were major Sensex gainers with gains of up to 3.01 per cent. Buying activity by retail investors also spread to mid-cap and small-cap stocks, which ended with gains up to 0.66 per cent higher.
Elsewhere, Asian markets ended lower amid heightening worries about the stability of junk-bond market and falling oil prices. While European stocks were higher as investors looked ahead to this week’s US monetary policy meeting.