Sensex, Nifty regain footing as Turkish lira rebounds

MUMBAI: Benchmark indices Sensex and Nifty on Tuesday regained confidence after two sessions of loss on emergence of buying mainly in financial, healthcare and IT stocks as market participants cheered moderate July inflation numbers and some recovery in Turkish lira assuaged jittery investors globally.

The 30-scrip Sensex rose over 207 points to close at 37,852 and the broader NSE Nifty settled above the 11,400-mark.

Moreover, global equity markets seemed regaining confidence as the threat from the Turkish lira crisis ebbed. The Turkish currency rebounded from its record low in early trade, strengthening against the US dollar after Turkey's central bank intervention.

Also, domestic market sentiment was buoyed by July inflation numbers.

Wholesale inflation eased to 5.09 per cent in July on account of cheaper food articles, from 5.77 per cent in June. Retail inflation also fell to a nine-month low of 4.17 in July.

Unabated buying by domestic institutional investors (DIIS) and robust corporate Q1 earnings by some blue-chip firms too drove investors sentiment. Mixed trend on Asian bourses and higher opening in European markets also supported the upmove on domestic bourses.

The 30-share Sensex, after opening on a strong note, continued its upward march to hit a high of 37,932.40 on valuebuying in recent losers. It lost some ground on profit-booking, before finally ending 207.10 points, or 0.55 per cent, higher at 37,852.

The gauge had lost 379.47 points in the previous two sessions.

The NSE Nifty, after touching a high of 11,452.45, ended 79.35 points, or 0.70 per cent, higher at 11,435.10.

Domestic institutional investors (DIIS) bought shares worth a net Rs 216.29 crore while foreign portfolio investors (FPIS) sold shares for Rs 971.86 crore on Monday, provisional data showed.