Sensex up 161 pts in early trade; IT stocks lead recovery

The BSE benchmark Sensex recovered over 161 points in early trade on Wednesday, on the back of rally in IT, healthcare and metal sector stocks due to fresh buying by funds and retail investors.

The 30-share barometer rose 161.31 points, or 0.88 %, to 18,395.97, supported by increased buying in beaten down bluechip stocks. The index had lost 651.47 points yesterday.

Similarly, the wide-based National Stock Exchange index Nifty moved up by 45.55 points, or 0.85 %, to 5,387.00.

Brokers said sentiments turned better after funds and retail investors made fresh purchases at selective stocks, available at attractive levels.
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Stocks of IT companies were in good demand on expectations that strengthening dollar would improve their earnings as 60 % of their revenues come from US and European markets.

However, stocks in the realty segment faced selling pressure after the RBI tightened norms for disbursal of home loans.

DLF plunged 2.75 % to Rs. 123.90, while Indiabulls Real Estate fell by 1.97 % to Rs. 54.75.

The IT sector index was trading 1.61 % higher at 8,053.11 points as stocks of Infosys were up by 1.98 % to Rs. 3,094, while TCS gained 1.30 % to Rs. 2,026.85.

Meanwhile, in other Asian markets, Hong Kong's Hang Seng index shed 0.99 %, while Japan's Nikkei down 0.74 % in early trade.

The US Dow Jones Industrial Average ended 0.16 % higher in yesterday's trade

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