Sensex recovers by 109 pts as exit polls forecast BJP win in Haryana, Maha

Logging its first rise in three sessions, the benchmark Sensex on Friday recovered 109 points to reclaim 26,000 mark on gains in banking, capital goods and consumer durable shares on hopes that state election results would give a much-needed boost to economic reforms. Exit polls have predicted BJP would gain majority in recently-held Maharashtra and Haryana assembly polls. Brokers say this would improve Centre-State co-ordination and consolidate BJP’s position in Rajya Sabha, a key factor to push major reforms. Smart rise in HDFC Bank, ICICI Bank, HDFC, L&T, SBI, M&M, Axis Bank, Hero MotoCorp, RIL, Bharti and Cipla shares mainly helped the market recover from two-month lows hit Thursday.

However, IT shares suffered a jolt after country’s largest software services exporter, TCS, on Thursday announced below-market-expectations second quarter results. The 30-share Sensex resumed lower on mixed Asian cues and touched a low of 25,910.77. It gradually started to bounce back and logged a high of 26,248.54 on firm European trends, up by 250 points. Later, it pared some gains and finally settled at 26,108.53, a rise of 109.19 points or 0.42 per cent. In previous two sessions, Sensex had shed 384.73 points.