Benchmark Sensex rebounded by over 140 points on Thursday on value buying by investors amid encouraging inflation data.
Punjab National Bank, at the centre of a massive Rs 11,400-crore scam, slumped by another 12 per cent.
The country's second largest state-run lender has now lost over Rs 8,000 crore of market valuation in two days — an amount equivalent to over six-times its full-year profit. However, other banking stocks held ground.
The 30-share Sensex rose by 141.52 points, or 0.41 per cent, to close at 34,297.47. The broader NSE Nifty gained 44.60 points, or 0.42 per cent, to end at 10,545.50 after touching a high of 10,618.10.
WPI inflation easing to a six-month low of 2.84 per cent in January and encouraging earnings by some blue-chips bolstered investor sentiment, brokers said.
Foreign portfolio investors (FPIs) sold shares worth Rs 728.71 crore on net basis, while domestic institutional investors (DIIs) too sold equities to the tune of Rs 152.39 crore on Wednesday, provisional data showed.
“Despite surge in US inflation to 2.1 per cent and weak consumer sales data, the global markets were positive on Thursday. Though domestic market traded in a positive territory, mid and small-caps witnessed selling pressure. Additionally, PSU banking index continued to under-perform due to NPA related issues. Investors are turning cautious due to rise in bond yields and possibility of faster than expected rate hike in future,” said Vinod Nair, Head of Research, Geojit Financial Services.
ICICI Bank emerged as the top gainer in the Sensex pack, spurting 3.15 per cent, while Infosys firmed up 1.47 per cent. Other winners were Power Grid, ONGC, Bajaj Auto, HDFC ltd, SBI, HUl, M&M, ITC, Dr Reddy's, Sun Pharma, TCS, RIl, Maruti Suzuki and NTPC.