Sensex rebounds from a 3-month low: Key reasons

Zee Media Bureau

New Delhi: After falling by 208 points to 3-month low on Friday, Sensex on Monday rebound to gain 106 points and end above the psychological 25,000-level.

Earlier in the day, Sensex dipped below the 25,000-mark but regain on the back of better-than-expected factory output data jumping 106 points to end at 25,150.35.

Here are the main reasons by the Sensex rebound.

• October industrial output: Industrial production for the month of October grew an unexpected 9.8 percent on a year-on-year basis.

• WPI inflation: The wholesale price index-based inflation eased for the 13th straight and read (-)1.99 percent in November as against (-)3.81 percent in October.

• Metal stocks: Stocks of metal companies such as Hindalco, Tata Steel and Vedanta rose after the government imposed anti-dumping duty of up to 57.39 percent on import of certain stainless steel products.

• Buying activities: Buying activity by retail investors also spread to mid-cap and small-cap stocks, which ended with gains up to 0.66 percent higher.

• Value-buying in several blue-chip stocks.