Mumbai: The BSE Sensex on Friday bounced back from a two-month low to end 55 points up on late buying in IT and auto scrips amid Finance Minister P Chidambaram's assurance that there was no need for panic and that the RBI will take action to stem the rupee slide.
The benchmark index resumed lower at 18,695.80 and dropped further to a low of 18,615.14 on sustained selling pressure. However, the Sensex recovered afterwards to 18,820.81 before finishing at 18,774.24, showing a net gain of 54.95 points or 0.29 per cent.
The NSE 50-share Nifty also moved up by 11.75 points or 0.21 per cent to finish at 5,667.65. Also, SX40 index, the flagship index of MCX-SX, closed 19.53 points up or 0.18 per cent, at 11,138.38.
Shares of auto, power and refinery also moved up on good buying enquiries at current levels while metal, realty and consumer durables continued to decline on selling pressure.
Among the 30-share Sensex pack on Friday, 16 stocks including Infosys, TCS, ONGC, Bharti Airtel, HDFC, Hero MotoCorp, Maruti Suzuki, Mahindra and Mahindra and Coal India ended higher. Thirteen scrips including RIL, SBI, BHEL, Hindalco and Jindal Steel closed lower. ITC managed to close flat on some support.
"We are watching the situation. The RBI will take whatever action it has to take. We have good economic advisors. We will (do) whatever has to be done... My request is you should not react in panic, it's happening around the world," Chidambaram said at a press conference in New Delhi.
The rupee had on Thursday touched an all-time low of 59.98 in intra-day trade. On Friday at 4 pm, it recovered to 59.14 on dollar sales by banks.
Higher European markets, where indices in France, Germany and UK firmed up to one per cent, helped boost domestic stocks.
Most Asian markets ended lower after the US Federal Reserve's plan to wind down bond purchases led to heavy losses on Wall Street, while Japanese stocks ended higher on the back of a weakened yen.
The Sensex had on Thursday crashed by over 526 points.