Bargain hunting hoists Sensex

The popular Sensex at BSE closed at 19405.10, a rally of 268.49 points or 1.4 per cent over Friday’s closing value and up close to 240 points from day’s low and off close to 45 points from day’s high.  The BSE Mid-Cap index rose 0.71 per cent, while BSE Small-Cap index rose 0.51 per cent, yet both outperformed the Sensex.

Witnessing a similar surge, the broader based 50-unit Nifty at NSE rose 78.05 points or 1.36 per cent to settle at 5830, yet a psychologically important mark of being above 5800 level.
Analysts attributed the market rebound to the emergence of bargain hunting following the steep fall in Sensex in the last four trading sessions. According to analysts last week’s weakness in the market gave an opportunity to buy frontline stocks at attractive valuations. Besides, the concerns over 2G spectrum row and housing loan racket have been almost factored in by the market.

Further, analysts noted that value buying by large institutional investors triggered the up-move in the stocks. Markets managed to recover from last week’s steep losses as investors lapped up beaten down stocks. Q2 GDP data will be announced on Tuesday and could have some bearing on the market’s mood, they noted.

The market breadth improved towards close of trade.