Mumbai, Oct 8 (PTI) In a highly volatile session, value-buying by investors in recently battered banking, oil & gas and auto stocks reversed the three-session losing streak, helping the Sensex and Nifty to close on a positive note Monday.
The Sensex swung over 660 points both ways on alternate bouts of selling and buying.
The 30-share Sensex touched a high of 34,636.43 on the back of sustained buying by domestic institutional investors (DIIs), but later turned choppy and hit a low of 33,974.66 as selling pressure gathered momentum.
However, amid buying towards the fag-end, it recovered to close the day higher by 97.39 points, or 0.28 per cent, at 34,474.38.
The 30-scrip gauge had lost 2,149.15 points in the previous three straight sessions.
The 50-share NSE Nifty too recovered by 31.60 points, or 0.31 per cent, to end at 10,348.05. During the session, it moved between 10,198.40 and 10,398.35.
Besides value buying, covering-up of short positions by investors also aided the recovery in the market.
Meanwhile, global cues remained negative with Asian markets leading the sentiment. Chinese stocks, in their first trading day after a one-week holiday, tumbled even though Beijing’s central bank increased liquidity to offset the impact of an escalating trade dispute with the US.
China’s central bank said on Sunday that it was cutting the reserve requirement rations (RRRs) by 1 per cent from October 15 which will inject a net USD 109.2 billion in cash into the banking system, amid a deepening trade war with the US that has increased pressure on growth in the world’s second largest economy.
European markets too weakened in early session.
On a net basis, domestic institutional investors bought equities worth Rs 1,902.07 crore in the previous session Friday, while foreign funds sold shares worth a net of Rs 3,370.14 crore, provisional data showed.