Sensex bounces back on value-buying, up 226 in early trade

The benchmark BSE Sensex recovered from two-week low by rising 226 points and the NSE Nifty recaputred the 7,400-mark in early trade today, mainly supported by value-buying in recently beaten down blue-chip stocks amid positive global cues.

Furthermore, covering-up of short positions by speculators at prevailing levels also helped the recovery.

The 30-share index was trading higher by 226.10 points or 0.93 per cent at 24,449.42 with all the sectoral indices, led by infrastructure, power and oil&gas, trading in the green with gains up to 1.58 per cent.

The gauge has lost 647.37 points in the previous three sessions following sustained foreign fund outflows amid global rout on renewed concerns over slowing growth after oil prices resumed slide.

Also, the NSE Nifty rose by 55.90 points or 0.91 per cent to trade above 7,400 mark at 7,428.90.

Brokers said value-buying in blue-chips after recent losses and covering of short positions by speculators helped market sentiments to improve.

Besides, a firming trend at other Asian markets, tracking overnight gains at the US markets on rebound in oil prices, triggered fresh spell of buying on the domestic bourses here, they added.

Among other Asian markets, Hong Kong's Hang Seng was up by 1.54 per cent while Shanghai Composite index marginally was up by 1.39 per cent in early trade today. Japan's Nikkei, however, was down 0.71 per cent.

The US Dow Jones Industrial Average ended 1.13 per cent higher in yesterday's trade.