Sensex Pares Gains After Touching 25,000; Nifty Holds 7,600
Markets pare early gains following muted trade in Asian markets.
Domestic stocks gave off early gains in volatile trade as markets across Asia tumbled to fresh lows. Worries over Chinese growth and the continued decline in oil prices weighed on global investor sentiment.
The Sensex opened nearly 100 points higher but erased those gains to trade flat-to-positive. The Nifty managed to hold on to the 7,600 mark.
Most sectoral indices, barring metals and auto traded in the red or in absolutely flat. Adani Ports, Bharti Airtel, Tata Motors, Sun Pharma and ITC were the biggest Sensex losers while HUL, Axis Bank, TCS, Lupin, Reliance were among the gainers.
Rupee Recovers After Dollar Selling by Exporters, Banks
Rupee recovered by 8 paise to 66.38 against the dollar on fresh selling of the US currency by banks and exporters amid a higher opening of the domestic equity market. Dealers said selling of the American unit by exporters and banks supported the domestic currency but dollar’s strength against other currencies overseas, limited the rupee’s gain.
Moreover, a higher opening in the domestic equity market also supported the rupee, they said.
The rupee had dropped by 25 paise to end at 66.46 in Tuesday’ s trade, snapping its nearly two-week winning spree on fresh demand for the dollar from banks and importers amid sharp fall in equity.
China, Oil Price Worries Keep Asia Muted
Asian stocks held near three-week lows on Wednesday as concerns about the underlying strength of the Chinese economy dogged investors while oil prices jumped by nearly two percent on growing hopes a global output freeze may materalize soon.
MSCI’s broadest index of Asia-Pacific shares outside Japan was barely in positive territory after falling to its lowest level since March. 16. Overnight, it dropped 1.6 percent, its biggest fall in almost two months.
(With agency inputs)
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