Domestic equity markets snapped its 3-day losing streak, rallying nearly 300 points by close to just below 24,5000. The Nifty climbed 84 points to rise above 7,400.
Markets gained momentum after a firm start as Asian markets rebounded led by surge in China stocks after data pointing to slower Chinese economic growth fanned stimulus hopes.
The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising nearly 180 points each.
Axis Bank, Adani Ports, Tata Motors, L&T and ICICI Bank were top losers while Wipro, M&M, ITC, Coal India and Maruti.
Rupee Snaps Losing Streak
Snapping its three-day losing streak, the rupee edged higher by 8 paise to 66.60 against the dollar, on fresh selling of the American currency by exporters and banks.
Besides, a higher opening in domestic stock markets supported the rupee but dollar’s strength against other currencies overseas capped the gains.
The rupee had dropped nine paise to close at 67.68 per dollar in Monday’s trade on sustained demand for the US currency from banks and importers amid sharp fall in equities.
Asia Rocovers, Europe Higher
Asian shares were mostly higher on Tuesday as Shanghai stocks surged after data pointing to slower Chinese economic growth fanned stimulus hopes.
China’s economy grew 6.8 percent in the fourth quarter from a year earlier, the data showed, the slowest growth since 2009. Industrial output in December rose 5.9 percent from a year earlier, compared with forecasts for a 6.0 percent increase.
The lack of negative surprises offered the market a slight reprieve following a tumultuous start to 2016 as concerns about China’s economic health weighed heavily on global growth prospects.
Louis Kuijs, Head of Asia Economics, Oxford EconomicsI think that at least the biggest fears about the real economy, fears that came to the surface during the stock market rout...I think those biggest fears were overblown.
European equities bounced back from 13-month lows on Tuesday, with mining and energy stocks leading the market higher after prices of major industrial metals and crude oil surged following the release of Chinese growth data.
Oil Prices Stuck Below $30
Oil prices were stuck near 12-year lows at below $30 in Asia as Iran ordered a boost to crude production after the West lifted sanctions, exacerbating an already oversupplied global market.
Prices sank to new depths not seen since 2003 on Monday, a day after the United States and Europe lifted the crippling economic sanctions in exchange for Tehran’s compliance with a deal to curb the country’s nuclear ambitions.
Iran immediately announced a major boost in oil production, with the National Iranian Oil Company saying it had ordered output to increase by 500,000 barrels per day. Iran currently produces 2.8 million barrels per day and exports just over one million barrels.
(With agency inputs)