Sensex gains 140 points on value buying
The benchmark Sensex rebounded over 140 points on Thursday on value buying by investors amid encouraging inflation data.
Punjab National Bank, at the centre of a ~114 billion scam, slumped another 12 per cent. The lender has now lost over ~80 billion of market valuation in two days — an amount equivalent to over six-times its full-year profit. However, other banking stocks held ground.
The 30-share Sensex rose 141.52 points, or 0.41 per cent, to close at 34,297.47. The broader NSE Nifty gained 44.60 points, or 0.42 per cent, to end at 10,545.50 after touching a high of 10,618.10.
The wholesale price index (WPI)-based inflation easing to a six-month low of 2.84 per cent in January and encouraging earnings by bluechips bolstered investor sentiment, brokers said.
Foreign portfolio investors (FPIs) sold shares worth ~7.28 billion, while domestic institutional investors (DIIs) sold equities to the tune of ~1.52 billion on Wednesday.
“Despite surge in US inflation to 2.1 per cent and weak consumer sales data, the global markets were positive today (Thursday). Though domestic markets traded in a positive territory, mid- and small-caps witnessed selling pressure. Additionally, PSU banking index continued to underperform due to non-performing asset-related issues. Investors are turning cautious due to rise in bond yields and possibility of faster than expected rate hike in future,” said Vinod Nair, head of research at Geojit Financial Services.