Indian shares rose on Thursday as buyers returned to the market after derivatives contracts expired. The 30-issue BSE index ended 0.6 percent higher at 7,660.42 points, off the day's low of 7,595.84. The index had lost 3.9 percent in the past week on worries about rising oil prices and their likely impact on growth, but it is up 15 percent in 2005 on foreign fund inflows of $7.3 billion.
"The market had nearly lost 400 points in the last few days, so those with a three- to four-year view began to look at the fall as an opportunity," said K. Ramachandran, head of the advisory desk at BNP Paribas. "When the overall sentiment is bullish, there are enough buyers waiting."
Foreign funds sold shares worth a net $25.4 million on Wednesday as the market stalled, though they have bought nearly $770 million worth this month.
On Thursday, the gains were across sectors, with Bajaj Auto Ltd rising 4.5 percent and software firm Wipro Ltd advancing 3.5 percent.
Larsen & Toubro Ltd rose 2.5 percent after it received an order worth 2.11 billion rupees to rebuild the Kensington Oval stadium in the West Indies.
Meanwhile, federal bonds recovered lost ground to end steady, supported by abundant liquidity, but traders were wary of the record crude price, which could fuel inflation and force a monetary tightening.
The yield on the actively traded 7.37 percent 2014 bond eased to close at 7.0549 percent, down from the morning's 7.0670 percent and barely changed from the previous close of 7.0518 percent.
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