Mumbai: Ignoring caution over below normal monsoon forecast, the benchmark BSE Sensex Wednesday rebounded by 214 points to snap its five-day losing run to 27,890.13 on value-buying in bluechip stocks like Sun Pharma.
Sentiment were also buoyed after Finance Minister Arun Jaitley said GST bill will be passed in the current session of Parliament, brokers said.
Reports of below normal monsoon for the second successive year, capped the gains to some extent. Retrospective taxation concerns and corporate earnings worries also weighed on sentiments, they added.
FIIs today met Minister of State for Finance Jayant Sinha and Revenue Secretary Shaktikanta Das on the Rs 40,000-crore tax demand by the government.
"If there is any help that can be given, we will see," Sinha said. The government, however, refused to relent saying the remedy lies in judicial appeal.
Firming trend in other Asian markets and falling crude prices overseas, after Saudi ended its military action in Yemen have a positive impact, trades said.
In volatile movements, the 30-share BSE barometer gained over 151 points in early trade on value-based buying. But on reports of subdued monsoon forecast, the gauge slipped into the negative zone to touch the day's low of 27,385.48.
A flurry of buying in the last one hour boosted the index to the day's high of 27,947.26, before settling with a gain of 214.19 points or 0.77 percent at 27,890.13.
On similar lines, the 50-share NSE Nifty, recaptured the crucial 8,400-mark by gaining 51.95 points or 0.62 percent to close at 8,429.70.
Despite, subdued monsoon forecast, shares of Hindustan Unilever topped the Sensex gainers by surging 3.59 percent.
Shares of Sun Pharma also made a comeback today to close 1.63 percent higher at Rs 967.15, a day after Japan's Daiichi Sankyo sold its entire in the company for Rs 20,025 crore.
Other gainers on the Sensex included, L&T 3.29 percent, Axis Bank 3.19 percent, Dr Reddy's 3.04 percent, M&M 2.03 percent, Tata Power 1.61 percent and HDFC 1.60 percent.
However, shares of Wipro plunged over 6 percent to Rs 544 after company's earnings failed to enthuse investors.
Sectorally, the BSE capital goods gained the most by rising 1.88 percent, followed by healthcare 1.20 percent, Banking index 0.78 percent and FMCG 0.52 percent.
The market breadth was largely flat as 1,382 stocks ended in red, 1,359 finished in green while 131 ruled steady. The total turnover fell to Rs 3,512.10 crore from Rs 4,021.67 crore yesterday.
Meanwhile, Foreign Portfolio Investors bought shares worth Rs 17,488.73 crore, while Domestic institutional investors picked up shares worth Rs 13,64.83 crore yesterday, as per provisional data.
A major chunk of Japan's Daiichi Sankyo stake sale in Sun Pharma was picked up by foreign investors, including Goldman Sachs and Singapore government.
"Markets were trading range-bound in the first half, but Indian Meteorological Department's report on weak monsoon triggered fresh fall. However, the strong recovery in the select index majors in last one and half hour completely turned the tables in favour of bulls," said Jayant Manglik, President-retail distribution at Religare Securities.
Globally, key indices in China, Hong Kong, Japan and Taiwan finished with gains, while from South Korea and Singapore ended with small losses.
European markets, however, were trading weak in their late morning deals. Key Indices from German, France and the UK were trading down in the range 0.45 percent to 0.58 percent.
Of 30 Sensex stocks, 20 closed with gains. Major gainers were HUL 3.59 percent, Hero MotoCorp 3.40 percent, Larsen 3.29 percent, Axis Bank 3.19 percent, Dr Reddy's 3.04 percent, M&M 2.03 percent, Sun Pharma 1.63 percent, HDFC 1.60 percent, BHEL 1.38 percent and HDFC Bank 1.20 percent.
However, Wipro dropped by 6.10 percent, followed by ONGC 2.61 percent, SBI 1.71 percent, Maruti 0.78 percent, Tata Motors 0.78 percent and Tata Motors 0.72 percent.
