Market update: BSE Sensex, Nifty snap three-day fall on S&P upgrade

The benchmark Bombay Stock Exchange (BSE) Sensex on Friday snapped its three-day fall to recover by 157 points as bluechips like SBI, ICICI Bank, Hindalco, Tata Steel and Sun Pharma posted gains after global rating agency Standard & Poor's raised the country's credit rating outlook to stable from negative.

After touching a low of 26,220.49 points in early trade, the 30-share BSE barometer bounced back to close higher by 157.96 points (or 0.60 per cent), at 26,626.32. Intra-day, it touched a high of 26,721.03.

Brokers said, a recovery in the rupee and positive cues from European markets also buoyed trading sentiments.

The gauge had lost 738.38 points in the previous three sessions due to weak global cues and the Supreme Court's verdict cancelling 214 of 218 coal blocks allocated since 1993.

On similar lines, the broader 50-share National Stock Exchange (NSE) Nifty recovered by 57 points (or 0.72 per cent), to close at 7,968.85 after shuttling between 7,841.80 and 7,993.30.

Sentiments turned better with banking stocks leading a rebound after S&P upgraded India's credit rating outlook to 'stable' from 'negative'.

SBI rose by 2.71 per cent, Axis Bank by 3 per cent, ICICI Bank by 0.76 per cent and HDFC Bank by 2.35 per cent, helping key indices to rebound from one-month lows.

In the derivatives segment, buying in metal and healthcare counters on the first day of October month series also aided trading sentiment, brokers said.

Metal stocks, which were badly beaten in the past two sessions, staged a strong comeback on value buying.

Hindalco gained the most by surging 5.25 per cent, Tata Seel by 3.10 per cent and Sesa Sterlite by 0.49 per cent.

Jindal Steel and Power rebounded 5.20 per cent.

Other bluechip gainers included Sun Pharma, Cipla, Mahindra and Mahindra, Tata Motors, RIL, ONGC and Wipro.

Major losers were Dr Reddy, Bajaj Auto, Bharti Airtel, GAIL, Hero MotorCorp, Hind Unilever and ITC that slumped up to 2.69 per cent.

Among the 30 Sensex scrips, 19 ended higher, while 11 ended in the negative zone.

Sectorwise, the BSE Metal index gained the most by surging 2.49 per cent, followed by Realty (2.27 per cent) and PSU index (2.19 per cent).