BSE Sensex snaps seven-day losing trend, jumps 205 points

The BSE Sensex jumped over 205 points, its first rise in eight days, buoyed by gains in interest-rate sensitive sectors after the Reserve Bank of India (RBI) announced fresh steps to boost liquidity in the banking system

Stock markets appeared to have ignored WPI inflation that rose to 7 per cent y-o-y in October from 6.5 per cent in September. Analyst Sonal Varma of Nomura said the data were generally "in line" with expectations.

Sentiment was buoyed as Janet Yellen, nominated to be the next chairman of the US Federal Reserve, indicated a strong economic recovery would enable the central bank to trim its $85-billion-a-month bond buying programme. The comments spurred hopes of the US Fed sticking to its current pace of asset purchases after the recent jobs and GDP data led to speculation that the bond-buying would be trimmed.

The 30-share index of the Bombay Stock Exchange, which had lost 1,045 points in the past seven sessions, recovered by 205.02 points, or 1.02 per cent, to end at 20,399.42. It had touched a high of 20,568.99 intra-day.

On similar lines, the 50-share National Stock Exchange Nifty rose by 66.55 points, or 1.11 per cent, to end at 6,056.15 led by stocks of auto, bank and realty.

The SX40 index of MCX-SX bourse ended at 12,119.39, up 117.27 points or 0.98 per cent.

Brokers said the market was in an "oversold position" and recovered on buying amid RBI planning to undertake open market operation next week by injecting Rs 8,000 crore into the system.

In step with the recovery in stock markets, the rupee was last trading higher at 63.25 versus the US dollar.

Tata Motors, ICICI Bank, L&T, HDFC Bank, Tata Steel and M&M shares helped the Sensex gain and snap its longest selling streak since the eight days ended August 2, 2013.

Sectorally, the BSE Auto sector index gained the most by rising 2.91 per cent, followed by Banking (2.66 per cent), Realty (2.28 per cent) and Capital Goods (1.88 per cent).

The market will be closed on Friday on account of 'Muharram.' For the week ended November 14, Sensex dipped by 266.73 points or 1.29 per cent, the second loss in a row.

With inputs from PTI