The Bombay Stock Exchange benchmark Sensex, which touched a four-month low yesterday, made some recovery, gaining 54 points as investors bought fundamentally strong scrips like RIL at prevailing low levels.
The Bombay Stock Exchange index, Sensex, today closed 53.67 points higher at 17,560.30, after trading in a range of 17,714.88 and 17,504.27 during the session.
Sensex leader RIL, which has been on a losing streak during the past week, rose 1.67 per cent to Rs 848.50 a share, followed by IT bellwether Infosys that climbed 0.65 per cent to Rs 2,726.45.
Brokers said the trading sentiment improved as investors and foreign funds judged the recent decline was excessive and bought blue-chips to avail themselves of attractive lower prices.
“The market entered in a oversold position with most of the stocks dipping to their recent low positions, giving chance to investors to pick them up at attractive levels,” said Mr Rajiv Malik of RNM Securities.
Firming trend in Asia and a higher opening in Europe also helped the trading sentiment.
However, the 30-share BSE gauge, Sensex, which had gained 108 points during early trade, shed some of its gains on emergence of profit-booking, closing just 54 points higher.
The broad-based National Stock Exchange index Nifty closed about 18 points higher at 5,275.85, after shuttling in the range of 5,322.45 and 5,257.