The BSE benchmark Sensex today recouped early losses to end the day higher by 167 points after a firm opening in European bourses buoyed the sentiment.The 30-share index closed at 17,700.90, up 166.81 points, or 0.95 per cent, after RIL and financial stocks rallied at the fag-end of trading.The National Stock Exchange's wide-based 50-share Nifty Index added 1.07 per cent to finish at 5,312.50 points.Reliance Industries (RIL) ended up close to 2 per cent amid reports that the petrochemicals giant is close to signing a JV deal with US-based private equity and hedge fund giant DE Shaw. The deal, when signed, will see the Mukesh Ambani-led company entering into the financial services sector.Energy major RIL has been on gaining spree since petrol prices were deregulated last Friday, barring its 2 per cent loss yesterday when the markets were hammered.Banking stocks bounced back, a day after being battered on fears of an imminent rate hike. ICICI Bank rose 1.55 per cent, HDFC Bank 0.57 per cent and HDFC 1.36 per cent. SBI, which fixed its base rate at 7.5 per cent, rose 0.31 per cent.Marketmen said that contrary to expectations that markets would linger in the red on account of global hiccups, the bourses showed strong resilience.They further said the sentiment turned bullish on Dalal Street in the second half after European bourses edged higher on the European Central Bank's announcement that it will lend USD 161 billion to banks, allaying fears of a liquidity crisis in the region.Brokers also said that the markets look bullish in the short-term, especially in view of reforms being undertaken by the government."The government's reformist strategy in oil and I&B sector has boosted investment confidence among FIIs and other market participants. Buying at the lower level and firm European cues helped the market to pare early losses today," CNI Research Chairman and Managing Director Kishore P Ostwal said. Mahindra & Mahindra jumped 1.76 per cent after the auto major said it has filed a motion to dismiss a lawsuit by its US distributor, Global Vehicles, over delays in the launch of the company's pick-up truck in the American market.Buying was witnessed in some other auto stocks ahead of monthly sales figures. Maruti Suzuki rose 2.49 per cent, Tata Motors 1.28 per cent and Hero Honda 0.03 per cent.Oil and gas sector stocks continued their winning streak in the wake of the government's decision to hike fuel prices last week. ONGC rose 1.11 per cent, HPCL 7.94 per cent, IOC 2.34 per cent and BPCL 4.29 per cent.In the BSE-30, 25 stocks ended with gains, while 5 shares settled in red.Except IT, all the sectoral indices on the BSE ended in the green. FMCG, oil & gas, auto and realty led the gain.ITC surged 2.63 per cent to emerge as the biggest gainer in the Sensex components. Anil Ambani-led RCOM and R-Infra moved up 2.35 per cent and 1.76 per cent, respectively.However, IT stocks lagged behind and did not participate in the rally. With a loss of 1.23 per cent, Wipro was the biggest loser in the Sensex pack. TCS slipped 0.41 per cent and Infosys 0.07 per cent.Meanwhile, Bharti Airtel was down 1.02 per cent and Cipla 0.81 per cent.On a monthly basis, the Sensex recorded a jump of 4.4 per cent in June.Asian bourses dropped for another session today, with China's Shanghai index losing 1.18 per cent and Japan's Nikkei 1.96 per cent. Europe was firm at mid-session.

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