Mumbai: The downward trend was arrested and stocks today (Sep 29, 2004) bounced back with a vengeance lifting the Sensex by 65 points on hectic short covering coupled with selective purchases by Foreign Institutional Investors (FIIs).

The market has lost over 154 points during the four-day retreat due to soaring crude oil prices.

The BSE Benchmark 30-share Index opened higher at 5472.70 and gradually moved upwards to the intra-day high of 5533.33 before ending the day at 5527.56 as against yesterday's close of 5462.61, a net rise of 64.95 points or 1.19 per cent.

Operators and retail investors, which had been sellers in the past four sessions on growing concerns over rising crude oil prices, resorted to hectic short-covering in view of the approaching expiry of September contract in the Futures and Options segment on Thursday, market players said.

Foreign Institutional Investors, which reported small net investments of Rs 39 crore on Monday (Sep 27, 2004), also were believed to be fairly good buyers in select key stocks.

The sentiment was aided by a smart rally on the Wall Street last night.

The Dow Jones Industrial Average and the Nasdaq Composite Index ended up by 88.86 points and 9.99 points yesterday.

Meanwhile, international oil prices remained well over $ 50 per barrel in Asian trade during the session and kept the market under pressure.

Blue chip stocks including RIL, SBI, Tata Steel, Satyam Computers, Infosys Tech, ONGC, HLL, BHEL, Hindalco, ITC, Tata Power and Wipro scored handsome gains on fairly heavy buying support from domestic players.