MUMBAI: The benchmark index BSE Sensex recovered by over 215 points in early trade on Tuesday after the blood bath of Dalal Street on Monday with the week’s low of 17,445 points. The reasons for gain are fresh buying by funds and retailers at attractive lower levels.
The 30-share Sensex, which had lost over 977 points in the past four sessions, recovered by 215.26 points to 17,6661.02.
Nifty, the wide-based index of National Stock Exchange, moved up by 69.45 points, to 5,350.65points.
Brokers said buying by funds and retail investors in realty, consumer durable, metal and banking stocks after recent losses lifted the market.
The BSE Sensex tumbled 478 points to3-week low of 17,445.75 on Monday, as stock markets slipped hard on rising crude oil prices, igniting investor worries that it will fuel inflation and dampen chances of interest rate cuts. Sensex logged steepest one-day fall in over 5-months, falling fourth day in a row — losing nearly 1,000 points and erasing `24,000 crore in investor wealth in the process.
Global markets were weak as the Brent crude oil and the New York crude oil reached nearly 10-month highs of USD 125 a barrel on concerns over supply disruptions from Iran due to sanctions over its nuclear programme.
In all, 12 of the 13 sectoral indices closed with losses of up to 5.29 per cent. Only BSE-FMCG index ended in the green because of rise in the ITC stock. Besides, 28 of the 30 BSE Sensex scrips closed in the red on Monday.
Interest-rate sensitive banking and realty stocks led the declines on investor worries that oil price pressures on inflation could make it difficult for the Reserve Bank to lower key lending rates. India imports over 80 per cent of its crude oil requirements. RIL and Infosys – with 20 per cent weight on the index -dropped 4.77 per cent and by 2.32 per cent on Monday.
Rupee gains 5 paise against dollar in early trade
The rupee appreciated by 5 paise to trade at Rs.49.17 per dollar on the Interbank Foreign Exchange today on increased foreign capital inflows.
Dealers said increased foreign capital inflows amid higher opening in local equities mainly kept the rupee sentiment firm.
The rupee had lost 29 paise to close at 49.22/23 against the dollar on fresh demand for the US currency from importers on Monday.
Meanwhile, the BSE benchmark Sensex shot up by 174.27 points, or 1.00 per cent, to 17,620.02 in early trade.