The BSE Sensex snapped two-session losing streak on Monday and gained 154 points at 16,939.28 on value buying in blue-chips such as RIL and Infosys,ahead of RBIs monetary policy review and expiry of the monthly derivative contracts. Asian cues were firm after the European leaders meeting yesterday raised hopes that the euro-zone debt troubles may ease soon. However,there was some weakness in European stocks in late morning trade due to fall in preliminary composite purchasing managers index (PMI) for the euro-zone in October,lowest reading since July 2009. Sensex erased nearly half of the 300 point intra-day gain on profit-booking towards the end of the trade. Besides,the total market breadth was negative as second-line stocks underperformed. The BSE 30-share barometer opened sharply higher,up 225 points and touched a high of 17,104.88. But it settled at 16,939.28,up 153.64 points or 0.92 per cent. In last two trading sessions,it had plunged 300 points or 1.75 per cent. NSEs Nifty recovered 48.40 points to 5,098.35. After a jittery week,markets opened with an upside gap on the back of strong rally in global markets, said Shanu Goel,senior research analyst at Bonanza Portfolio.
