Mumbai: A slight ease in crude oil prices along with value buying and a strong rupee aided the benchmark Sensex to snap its longest consecutive sessions fall in the last eight years on Wednesday.
Accordingly, the benchmark index closed with handsome gains of over 400 points while the Nifty50 jumped past the 10,700 mark after struggling in the past sessions.
Adding to the positive momentum were the gains made by the rupee and healthy domestic investment which were supported by expectations that the US and China may resolve their trade tensions.
“Positive global markets lifted the domestic market sentiments after 2 weeks of under performance. Dovish minutes from US Fed and resumption of dialogue between US and China added positive vibes to the global market,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Strong inflows from DIIs, appreciation of rupee and value buying in mid and small caps helped the domestic market.”
The S&P BSE Sensex closed 403.65 points or 1.14 per cent higher at 35,756.26 from its previous close of 35,352.61, while the NSE Nifty50 ended 131.10 points or 1.24 per cent higher at 10,735.45.
Among the top gainer were Vedanta, which inched up 4.67 per cent, followed by Tata Steel, up 4.13 per cent. ONGC, NTPC and Yes Bank came next.
Sensex saw only four stocks ending in the red led by Hero Moto Corp, Hindustan Uniliver, Bajaj Auto and IndusInd Bank.
“During the penultimate hour, we saw emergence of strong buying interest, reclaiming 10,700 convincingly by adding more than 130 points to the bulls’ kitty,” said Sameet Chavan, Chief Analyst, Technical and Derivatives, Angel Broking.
Historically, Chavan said it had been observed that whenever index corrects for eight straight sessions without surpassing the previous day’s high, the ninth day becomes a reversal day or a bounce back day.