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Indian Shares Rebound After Early Plunge, Settle Notably Higher

Indian shares ended on a strong note on Thursday, rebounding well from recent losses and an early sharp plunge, as positive global cues helped offset worries about the worsening pandemic situation.

Bank and metal stocks turned in a good performance, contributing substantially to market's gains. Pharmaceuticals, information technology and FMCG shares were among the notable losers.

The BSE benchmark Sensex, which plummeted by about 500 points at the start to 47,204.50, rallied to 48,143.16 before settling for the day at 18,080.67, netting a gain of 374.87 points or 0.79%.

The broader 50 index of the National Stock Exchange ended with a gain of 109.75 points or 0.77% at 14,406.15, well off the day's low of 14,151.40.

Wipro, ICICI Bank, Tata Steel, JSW Steel, HDFC, BPCL, Bajaj Auto, Kotak Bank, Adani Ports, HDFC Bank and State Bank of India gained 2 to 3.5%.

Shree Cement, Titan Industries, Hindustan Unilever, Tech Mahindra, Asian Paints, UltraTech Cement and Mahindra & Mahindra were among the prominent losers.

The early plunge was due to rising worries about the spread of the coronavirus infections across the country. India reported more than 3 lakh COVID-19 on Wednesday, with as many as 3,15,660 new cases and 2,091 deaths being recorded in the country till about an hour before midnight.

Although the government has stated that lockdown will be a last resort, the relentless surge in new cases raised fears that the country may have to resort to widespread restrictions to prevent the spread of the pandemic.

However, expectations that the mass vaccination drive planned by the government will help curb the spread of the pandemic prompted traders to pick up stocks.

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