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Sensex gains 359 points to recover from 8 month lows

The benchmark BSE Sensex snapped its six-day losing run by surging 359 points today and rebounded from near eight months low to 26,840.50 on value-buying in blue-chips, BHEL, Bajaj Auto and RIL, after MSCI’s decision to defer inclusion of China?s shares.

Besides, rupee’s recovery against dollar to Rs 63.83 too boosted sentiment.

Foreign funds and retail investors started buying after MSCI decided not to add Chinese stocks to its widely tracked emerging-markets index.

The inclusion would have resulted in a sharp increase of China’s weight-age in the index, which would have come at an expense of other emerging markets, including India.

“Deferral of China?s shares into MSCI index, strong global cues and stronger rupee lifted the sentiment,” said Gaurav Jain, Director at Hem Securities.

Recovery was so strong that all 12 sectoral indices closed with gains between 0.34 and 2.08 per cent with IT, capital goods, teck, auto, oil&gas, banking and power sectors leading the pack.

Overall, 29 out of 30 Sensex scrips gained, while Cipla closed a tad lower.

The Sensex opened on a strong footing at 26,517.32 and continued its upward trend to hit day’s high of 26,934.74 on across-the-board value buying in blue-chips.