(RTTNews) - India's benchmark indexes Sensex and the Nifty rebounded from their five-month lows on Wednesday, as strong global cues amid some encouraging earnings reports and signs of growth in the U.S. and Europe bolstered sentiment. With positive global manufacturing data raising expectations for stronger global growth this year and euro's gains against dollar adding to rupee strength, concerns over tepid portfolio inflows subsided to some extent, triggering short covering in Indian equities. The Indian rupee strengthened against the dollar for a second consecutive day today, buoyed by a bounce back in local stocks coupled with strength in other Asian currencies amid easing concerns over Egypt. However, after rising to a high of 18,306 early in the session, the BSE Sensex failed to hold onto the initial gains as investors took profits at higher levels. The 30-share Sensex ended up about 70 points or 0.38 percent, with only 13 of its components ending in the green. The 50-share Nifty posted a modest 0.27 percent gain. The broader indexes such as the BSE mid-cap and small-cap, meanwhile, ended on a flat note, after giving up early gains. The market breadth on the BSE was slightly positive, with 1421 gainers versus 1382 decliners. The intra-day sell-off following the sharp bounce back earlier in the day suggests a bearish outlook for Indian equities in the short-term, mainly because of renewed selling by foreign funds owing to inflation worries and better investment opportunities elsewhere in other high-growth markets. After remaining net buyers to an extent of Rs.2,049.60 crore in December, foreign institutional investors sold shares worth Rs. 4,813.20 crore on a net basis in January, data shows. Investors were also worried about the political fallout of former telecom minister A. Raja's arrest by the CBI in connection with the 2G spectrum scam. In stock-specific action Bharti Airtel rose 2.75 percent despite reporting a bigger-than-expected 41 percent fall in its quarterly consolidated net profit, mainly due to one-time brand relaunch cost of Rs. 340 crore and a loss of Rs.151 crore on account of adverse foreign currency fluctuations. Tata Motors, which led the decliners yesterday, climbed nearly 4 percent on bargain hunting. Heavyweight Reliance Industries advanced 2.88 percent after its recent underperformance. Metal stocks such as Hindalco and Sterlite gained around 2 percent each, buoyed by higher base metal prices. Software exporters such as TCS and Wipro rose around 2 percent each, boosted by positive economic data out of the Untied States. However, Infosys closed marginally lower on management rejig reports.

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