Sensex keeps its chin up, bounces 126 pts on value-buying

Defying an overall weakness across global markets, the benchmark BSE Sensex surged and recovered about 126 points in early trade today, snapping its 3-session losing spell, mainly on the back of value-buying by retail investors in recently beaten-down stocks.

The 30-share barometer was up 125.76 points, or 0.50 per cent, at 25,227.49, with sectoral indices in healthcare, capital goods, auto, banking, FMCG, power and IT leading the recovery, rising by up to 0.92 per cent.

The Sensex had lost 505 points in the previous three sessions.

Sun Pharma, Tata Motors, HDFC, Lupin, ONGC, NTPC, Dr Reddy’s, Hero MotoCorp, ICICI Bank, RIL, SBI and Hindustan Unilever played a big role in adding muscle to the build-up.

The NSE Nifty too quoted 30.20 points, or 0.39 per cent, higher at 7,736.75.

Brokers said value-buying in select blue-chip stocks by retail investors and funds made mood turn for the better.

However, weakness in rest of Asia, which saw more losses following another round of sell-off in New York and Europe hit by global growth concerns, restricted the upmove here.

Hong Kong’s Hang Seng fell 0.45 per cent while Shanghai Composite edged lower 0.32 per cent in early hours today. Japanese financial markets are shut today for a public holiday.

The US Dow Jones Industrial Average ended 0.56 per cent lower yesterday.