The Sensex and Nifty snapped three sessions of losses to close higher on Wednesday as IT stocks led the recovery with bank stocks which have been battered by the Punjab National Bank's Rs 11,400-crore fraud gaining some lost ground.
TCS (3.38%) , ITC (2%) and ONGC stocks 1.79% led the recovery on Sensex which closed 141 points or 0.42% higher at 33,844 level. Nifty rose 37 points or 0.36% higher to 10,397 level.
While the Nifty IT index rose 2.33% or 288 points to 12,660 level, the BSE information technology index rose 2.20% or 265 points to 12,338 level.
HCL Technologies ended 4.14 percent higher at 945 level and was the top percentage gainer on the Nifty.Tech Mahindra (3.54%), TCS (3.31%) and ITC (1.82%) were other major gainers on the index.
Metal stocks were the top losers with the BSE metals index falling 191 points to 14,867 level.
"IT stocks and ITC have given stability to markets at this level ... markets could remain range-bound today," said Madhumita Ghosh, head corporate solutions, Tasmac Global Education.
Selloff continued in state-run lenders after a fraud at Punjab National Bank (PNB) shook the industry last week. The Bank Nifty recovered 62 points in late trade to 24,936 level. The BSE bankex too rose 81 points to 28,142 level.
But Ghosh said the fall in public sector banks is expected to continue.
After much criticism over his silence on the PNB fraud, Finance Minister Arun Jaitley on Tuesday assured the country that state would chase down whosoever "cheats the banking system". The recovery in the banking stocks can be attributed to the FM's statement and buying at low levels in anticipation of profits.
Market breadth was negative 1131 stocks rising against 1590 falling on BSE. 149 stocks were unchanged.
The Eros International stock closed 4.63% or 9.15 points higher at 206.85 level on BSE. The stock rose after Reliance Industries Limited (RIL) on Tuesday said it would acquire 5 percent stake in NYSE listed Eros International for Rs 1,000 crore with a view to producing and acquiring Indian films and digital originals across all languages.
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