Sensex rebounds on bargain buying; sentiment remains cautious

The BSE Sensex today recovered by 107

points to close at 31,809.55 in a choppy trade on bargain

buying by jittery investors in banking, oil & gas and auto

stocks.

Buying activity picked up momentum in the later part of

the session largely in tandem with strong opening of European

shares.

The overall recovery received some support from consumer

durables, realty, oil & gas, metal and banking stocks which

recouped their losses to an extent.

The NSE Nifty also moved up by 39.35 points, or 0.40 per

cent, to end at 9,952.20, after moving between 9,963.10 and

9,901.05.

Meanwhile, the services sector activity in India suffered

the second consecutive month of contraction in August

as business activity and new work orders got affected by the

Goods and Services Tax (GST), a monthly survey has found.

The Nikkei India PMI said in its survey, activity Index

improved slightly from 45.9 registered in July to 47.5 in

August.

The Sensex opened higher and hit the day's high of

31,863.47 as banking, auto and IT stocks advanced. But

profit-booking triggered by weak Asian markets dragged the

barometer to a low of 31,674.23 in afternoon session.

It finally closed higher by 107.30 points, or 0.34 per

cent, at 31,809.55 on strong European cues.

The Sensex had lost 189.98 points in the previous session

in line with a general weakness cross the globe fuelled by

North Korea's nuclear test on Sunday.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)