Sensex surges over 300 points; realty, banks up

MUMBAI: Indian markets bounced back, after a sharp correction in past few sessions, aided by pull-back in global equities on hopes that European nations may come out with solutions to prevent Greece from debt default. All the sectoral indices were in the positive terrain with rate sensitives like realty and banks leading the rally.

At 11:30 am; Bombay Stock Exchange's Sensex was at 16374.43, up 323.33 points or 2.01 per cent. The 30-share index touched intraday low of 16282.74 and high of 16385.

National Stock Exchange's Nifty was at 4940.30, up 104.90 points or 2.17 per cent. The broader index touched a high of 4942.70 and low of 4905.15 in trade so far.

"The trend continues to remain negative but looking at the current development we believe that Nifty future is not willing to close below 4735 and therefore it seems that from a short term trading perspective one can buy with a stop-loss of 4700 for a minimum target of 5040.

Buying on decline is sensible with a stop-loss of 4735 and if Nifty future manages to hold above 4930 then possibly we could see a level of 5040," said Nirmal Bang report.

BSE Midcap Index was up 1.62 per cent and BSE Smallcap Index gained 1.54 per cent.

Amongst the sectoral indices, BSE Realty Index rallied 2.68 per cent, BSE Bankex gained 2.37 per cent and BSE IT Index moved 2.16 per cent higher.

Shares of realty and banking stocks gained momentum after being beaten down badly as traders took positions on hopes that rate hike cycle may be nearing an end in near future.

Shares if IT companies continued to move higher following recent correction in rupee against the dollar. However, the partially convertible rupee was at 49.24/25 per dollar against previous close of 49.44/45 on the back of dollar inflows in capital markets.

Jaiprakash Associates (5.64%) Tata Motors (5.58%), DLF (3.77%), ICICI Bank (3.55%) and Sterlite Industries (3.45%) were amongst the major Sensex gainers.

Sun Pharma (-0.19%) was the only loser.

Market breadth was positive on the BSE with 1770 gainers against 626 losers