Bucking weak global trends, Sensex today snapped two straight days of losses and closed 56 points higher at 17,440.87 on strong buying in Reliance Industries, SBI and ICICI Bank in the second half of trading.
The BSE benchmark index, which had lost over 150 points in the previous two sessions, dropped by over 75 points in choppy trade earlier today. The index, however, recovered lost ground in the last two hours to close 56.47 points higher, or 0.32 per cent over yesterday's closing.
Traders said 30-share Sensex recovered as Reliance Industries wiped off two days of losses to close today 1.87 per cent higher. SBI that gained 1.25 per cent and ICICI Bank which gained 1 per cent provided good support, they added.
GAIL, Jindal Steel, Tata Motors and Tata Steel rose between 1.4-2.6 per cent each. Realty, Oil & Gas, Power, Consumer Durable and Metal stocks attracted good buying while some IT and pharma shares ended with losses, brokers said.
Trading sentiment was also bolstered on reports the government is planning to take steps to accelerate GDP growth.
Although global slowdown is affecting India, the fundamentals of its economy are strong and the government is taking a series of steps to see it moves to a higher growth trajectory, Cabinet Secretary Ajit Kumar Seth said in Delhi.
The 50-share National Stock Exchange index Nifty rose by 20.25 points to 5,274, after dipping to day's low of 5,233.20.
Meanwhile, with the storm over coal block allocation issue refusing to subside, Parliament was paralysed for the tenth day today as BJP remained unrelenting on its demand for resignation of Prime Minister Manmohan Singh.
In Asia, barring Taiwan, indices of major countries were down. Europe was also trading weak in afternoon deals today.
The BSE Realty sector index gained the most by rising 1.59 per cent, followed by BSE Oil and Gas index that gained 1.19 per cent. The BSE Power index rose by 0.92 per cent while the BSE Consumer Durables index inched up by 0.89 per cent. Globally, the market sentiment was tepid today as investors once again focussed on Eurozone worries after ratings agency Moody's downgraded its outlook on the European Union to negative and warned that the region could lose its 'AAA' debt rating, experts said.
Key benchmark indices in China, Hong Kong, Japan, Singapore and South Korea fell between 0.10 per cent and 0.75 per cent. European markets were also lower with France's CAC down by 0.63