Sensex rebounds 173 pts

Benchmark Sensex rebounded from early lows to settle higher by 173 points on Wednesday following buying in Reliance Industries, Larsen & Toubro and ITC and positive trends in Asian and European markets.

The 30-share BSE Sensex rose by 173.22 points or 0.26 per cent to settle at 66,118.69 with 20 of its components ending in the green and 10 closing lower.

The index opened lower and fell further to a low of 65,549.96 in morning trade. However, buying in Reliance, L&T, Infosys and Maruti helped it recover losses. Later, it jumped 226.8 points or 0.34 per cent to a high of 66,172.27.

The Nifty gained 51.75 points or 0.26 per cent to end at 19,716.45. It moved between a low of 19,554 and a high of 19,730.70 in day trading. Among the Sensex firms, Larsen & Toubro, ITC, Sun Pharma, Maruti, Reliance Industries, Axis Bank, IndusInd Bank and Hindustan Unilever were among the gainers.

Titan, State Bank of India, ICICI Bank, HDFC Bank, Tata Steel and Nestle were the major laggards.

"The market inched higher in the second half, driven by positive openings in European markets. Concerns about global interest rates and elevated oil prices are being balanced by several domestic factors, such as promising economic growth prospects and the potential for strong earnings, which validate the premium valuation," said Vinod Nair, Head of Research at Geojit Financial Services.

Persistent outflows of foreign funds and rising US bond yields are expected to keep the broader indices in bleak terrain, in the near term, Nair added.

Ajit Mishra, SVP - Technical Research, Religare Broking Ltd said that markets remained volatile but ended higher due to recovery in select heavyweights.

"The impending rebound in select heavyweights like Reliance and ITC largely contributed to the recovery," Mishra said.