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Sensex closes 299 points higher, Nifty reclaims 11,000 mark; YES Bank, TCS, SBI top gainers

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Sensex closes 299 points higher, Nifty reclaims 11,000 mark; YES Bank, TCS, SBI top gainers

The Sensex opened on a strong note at 36,274.25 but soon fell on concerns surrounding the NBFC space and the commercial paper market.

The Sensex and Nifty snapped their three-day losing streak today as the Reserve Bank of India (RBI) announced measures to shore up liquidity amid the government pressing for a change of management at the crisis-hit IL&FS.

In see-saw trade, the Sensex soared 299 points to close at 36,526.14, while the NSE Nifty jumped 77.85 points to reclaim the 11,000-mark.

Positive manufacturing PMI data for September and healthy auto sales numbers also reassured investors, brokers said.

YES Bank was the top gainer in the Sensex pack, rising 9.86 per cent, after the mid-sized lender said it was fully geared up to find a successor for its MD and CEO Rana Kapoor, whose tenure was curtailed by the RBI last month.

Shares of IL&FS group companies surged up to 20 per cent after the government moved the National Company Law Tribunal (NCLT) for change of management at the crisis-hit firm.

The NCLT allowed the government's plea to reconstitute the board of Infrastructure Leasing & Financial Services Ltd (IL&FS) after market hours today.

Debt defaults by certain group entities of diversified IL&FS have triggered fears of liquidity crisis in the financial markets and the RBI has been taking steps to improve the overall cash situation.

The Reserve Bank on Monday announced that it would inject Rs 36,000 crore liquidity into the system through purchase of government bonds in October to meet the festival season demand for funds.

The Sensex opened on a strong note at 36,274.25 but soon fell on concerns surrounding the NBFC space and the commercial paper market.

However, it recovered in afternoon trade to touch a high of 36,616.64, before finally closing higher by 299.00 points, or 0.83 per cent, at 36,526.14.

The NSE Nifty gained 77.85 points, or 0.71 per cent, to finish at 11,008.30. Intra-day, it shuttled between 10,821.55 and 11,035.65.

Meanwhile, foreign institutional investors (FIIs) net sold shares worth Rs 1,699.94 crore on Friday, while domestic institutional investors (DIIs) bought equities to the tune of Rs 3,256.34 crore, as per provisional data.

"Market rebounded after a weak start with short covering in banking stocks after recent correction and a positive global market. The new trade deal between US and Canada eased trade war concerns and will stimulate sentiment," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.

Top Sensex gainers were YES Bank (9.68%), TCS (3.26%) and SBI (3.04%).

Of 30 Sensex stocks, 22 closed higher.

Bharti Airtel (3.67%), Axis Bank (3%) , IndusInd Bank (2.58%) and Reliance Industries 2.12% were the top Sensex losers.

Meanwhile, the BSE small-cap index fell 0.25 per cent while the mid-cap gauge gained 0.53 per cent.

However, market breadth remained negative with 1005 stocks closing higher compared to 1664 stocks ending in the red on BSE.

In other Asian markets, Japan's Nikkei gained 0.52 per cent, Hong Kong's Hang Seng rose 0.26 per cent and Shanghai Composite Index climbed 1.06 per cent.

In Europe, Frankfurt's DAX rose 0.60 per cent and Paris CAC 40 was up 0.33 per cent in early deals. London's FTSE 100 too inched up 0.01 per cent.