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BSE Sensex bounces back on PM's assurance; FMCG, oil stocks surge

The 30-scrip BSE Sensex, which plunged 244 points on Monday, closed 153.97 points, or 0.92 per cent higher at 16,859.80 points.

Sensex bounces back on PM's assurance

Sensex bounces back on PM's assurance

The BSE Sensex on Tuesday closed 153.97 points higher, led by good buying support for fast moving consumer goods (FMCG) and oil and gas stocks.

The 30-scrip index of the Bombay Stock Exchange (BSE), which plunged 244 points on Monday after the Reserve Bank of India (RBI) kept interest rates unchanged, closed 153.97 points, or 0.92 per cent higher at 16,859.80 points.

Investor sentiment was buoyed by Prime Minister Manmohan Singh's statement that the government is determined to take "tough" decisions to reverse the rising fiscal deficit, amid oil prices falling below the $83 mark.

"Like other countries, we too allowed the fiscal deficit to expand after 2008 to impart a stimulus. We are now focussing on reversing the expansion. This will require tough decisions, including on controlling subsidies, which we are determined to take," Singh said while addressing leaders of the G-20 nations in Mexico.

The Sensex touched a high of 16,890 points and a low of 16,681.89 points intra-day.

The BSE midcap index was up 10.12 points while the smallcap index fell 0.54 points.

The wider 50-scrip S&P CNX Nifty of the National Stock Exchange was 39.60 points or 0.78 per cent up at 5,103.85 points.

The BSE oil and gas sectoral index was up 166.21 points, the FMCG index was up 75.17 points and health care index was up 73.96 points.

Major Sensex gainers were Gail India, up 8.70 points at Rs 336.15; Reliance Industries, up 18.55 points at Rs 737.25; ITC, up 6.05 points at Rs 249.10; Bharti Airtel, up 5.65 points at Rs 314.75; and ONGC, up 4.40 points at Rs 267.60.

Major Sensex losers were Sterlite Inds, down 1.55 points at Rs 94.35; BHEL, down 2.85 points at Rs 211.55; Infosys, down 32.35 points at Rs 2,478.55; Tata Power, down 1.05 points at Rs 91.05 and Jindal Steel, down 1.06 points at Rs 427.80.

Bank stocks like ICICI Bank, HDFC Bank and SBI also rose around 1 per cent each after taking a beating on Monday.

The market mood was also supported as Finance Minister Pranab Mukherjee in New Delhi said the government is taking steps to improve inflow of foreign investment.

Dealers said investors ignored the rupee falling below the 56-mark yet again as global investors await signals in two-day US FOMC meeting, starting Tuesday, for a stimulus package.

With inputs from agencies
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