After moving in and out of negative territory for a long time, the market has rallied sharply in mid afternoon trade with investors indulging in some hectic buying in bank, capital goods, oil and information technology stocks. Power and consumer durables stocks are also edging higher, while realty, metal, healthcare and FMCG stocks are a bit flat.
The rupee's recovery from a two-month low and a firm trend in European markets are contributing to the market's rise from lower levels.
At 25,470, a long way up from the day's low of 25,104.50, the Sensex is now up by about 280 points or 1.1% from its previous close. The Nifty is up 46.05 points or 1.01% at 7609.60, around 100 points off the day's low of 7509.25.
The rupee, which tumbled to a 2-month low of 60.47 against the U.S. dollar, has recovered to 60.02 a dollar now.
Axis Bank is up 3.5%. ICICI Bank is up nearly 2% and State Bank of India has gained about 1%. HDFC Bank is up with a modest gain of 0.45%.
ONGC has moved up by over 2.5%. Reliance Industries is up 1.2%, contributing notably to the market's rebound. GAIL India has notched up a gain of 2.3%.
Coal India, Bharti Airtel, BHEL, Tata Motors, NTPC and Maruti Suzuki are up 1.5% - 2%. Larsen & Toubro, Tata Consultancy Services, Sun Pharmaceutical Industries, HDFC, Sesa Sterlite, Wipro and Infosys are also notably higher.
HCL Technologies, Asian Paints, Ultra Tech Cement and IndusInd Bank are up 2% - 3.5%. Punjab National Bank, Cairn India, Ambuja Cements, BPCL, Power Grid Corporation, Lupin and Bank of Baroda are also notably higher.
Mahindra & Mahindra, United Spirits, Jindal Steel & Power, Hero Motocorp, DLF, Dr Reddy's Laboratories and Hindustan Unilever are down with sharp to moderate losses.
Sugar stocks are up on strong buying support. Dwarikesh Sugar Industries, Balrampur Chini Mills, Dhampur Sugar Mills, Simbhaoli Sugar Mills , Triveni Engineering & Industries, Sakthi Sugars, Shree Renuka Sugars and Bajaj Hindustan are all up with impressive gains.
SKS Microfinance Limited (up marginally at Rs 272) has informed the exchanges that the company's credit rating for bank borrowings has been upgraded by a leading rating agency to A1+ from A1 for short-term facilities and to A+ from A for long-term facilities for an aggregate sum of Rs. 2,000 crore.
Pennar Industries (1.2%) is up following an announcement that company and its subsidiaries have received orders worth Rs 105 crore.