- Nifty rises 100 points to close at 11,067
- Banking, financial services, FMCG, pharma stocks lead gains
- Sensex, Nifty shed 4.7% in past five days
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Thirty five stocks on the 50-scrip Nifty index finished the day with gains. Kotak Bank, HDFC, State Bank of India (SBI), HUL and Lupin - closing between 3 per cent and 3.3 per cent higher - led the rise in the Nifty.
The Nifty Bank and Nifty PSU bank - the NSE's sectoral indices comprising banking and PSU banking stocks - closed 1.4 per cent and 1.9 per cent higher respectively. Other prominent gainers included Axis Bank, HDFC Bank, Mahindra & Mahindra Finance and ICICI Prudential Life Insurance.
"The markets witnessed considerable volatility during the day...however, positive statements from LIC Chairman on IL&FS and news of successful raising of funds by Indiabulls Housing finance boosted investor sentiments," said Jayant Manglik, president, Religare Broking.
Life Insurance Corporation (LIC) Chairman VK Sharma said the company will not allow Infrastructure Leasing & Financial Services (IL&FS) to collapse.
However, overall breadth of the markets was negative, with 691 advancers against 1,059 decliners on the National Stock Exchange (NSE). On the BSE, 1,585 shares closed lower against 1,073 that finished with gains.
Dewan Housing Finance Limited (DHFL) shares closed 22.4 per cent lower, reversing some recovery registered on Monday. Last Friday, the DHFL shares had nearly halved in value after concerns over potential for a credit crunch had heightened when bonds issued by the company were sold by a large fund manager at a hefty discount.
Finance Minister Arun Jaitley had said on Monday that the government stood ready to take steps to ensure adequate liquidity to NBFCs, echoing assurances already given by the central bank and the market regulator.
Meanwhile, the rupee declined 33 paise against the US dollar to trade inches away from its all-time lows registered in the past few weeks. A surge in crude oil prices to $81 a barrel - past its 2014 highs - along with strength in the dollar overseas battered the rupee. The currency is down more than 13 per cent against the dollar so far this year.
The government met chiefs of PSU banks for an annual performance and reform review on Tuesday.
Domestic institutional investors (DIIs) net purchased equities to the tune of Rs 1,527.67 crore on Monday, while net sale by foreign portfolio investors (FPIs) stood at Rs 523.94 crore, provisional data from the NSE showed.
(With agency inputs)