Markets Sprint 400 Pts From Day’s Low Led by Bank & Auto Stocks
Indian stocks bounce back from the day’s low
Domestic equity markets staged a remarkable recovery after struggling for the most part in morning trade. The BSE benchmark Sensex jumped nearly 400 points from the day’s low and the Nifty climbed above the 7,950 mark.
Mid- and small-cap indices too were back in the green and in fact, outperformed the large cap indices.
Almost all sectoral indices on the BSE were trading with solid gains.
From a largely red screen in the morning, almost all Sensex stocks bounced back in the green. Tata Steel was the biggest gainer with 4 percent gains. Maruti jumped 4 percent after fourth quarter earnings. Banks and auto stocks which dragged indices in morning trade, led the recovery.
For the fourth straight day, the rupee weakened by 17 paise to 66.79 against the US dollar in early trade on sustained demand for the American currency from banks and importers amid lower domestic equities. Weakness of dollar against other currencies overseas as well as persistent foreign capital inflows restricted the rupee’s loss, forex dealers said.
On Monday, the rupee had lost 14 paise to close at 66.62 against the US dollar on persistent demand for the American unit from banks and importers amid lower domestic equities.
Asia, Wall Street Cautious Ahead of Fed, BoJ Meetings
Asian stocks retreated as investors braced for central bank policy meetings in the United States and Japan this week.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3 percent, while Japan’s Nikkei slipped 1.1 percent.
Hong Kong’s Hang Seng index tumbled 0.5 percent. But Chinese shares were flat, with the CSI 300 little changed and the Shanghai Composite slipping 0.1 percent.
Investors are cautious about buying riskier assets ahead of the US Federal Reserve’s two-day policy meeting starting later on Tuesday.
(With agency inputs)
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