Late rally lifts Sensex by 190 points, rupee ends at 30-month low
Market benchmark Sensex rebounded by 190 points to finish at 23,381.87 on fag-end buying from investors at lower levels coupled with higher European cues following recovery in crude oil prices.business Updated: Feb 17, 2016 18:57 IST
Market benchmark Sensex rebounded by 190 points to finish at 23,381.87 on fag-end buying from investors at lower levels coupled with higher European cues following recovery in crude oil prices.
The broader NSE Nifty too regained the key 7,100-mark.
Late recovery in beaten-down state-run lender stocks on value-buying, particularly, State Bank of India, influenced sentiment.
However, concerns prevailed as the rupee depreciated to to a 30-month low of 68.67 against dollar during the day.
“indexes opened on a negative note followed mixed global cues but gained momentum post the opening of European indexes in green,” said Gaurav Jain Director of Hem Securities.
The BSE benchmark Sensex opened higher at 23,237.23 and hovered in a range of 23,434.91 to 22,920.84 before finishing at 23,381.87, showing a gain of 190 points or 0.82%.
The index dropped by 362 points on Tuesday as participants locked in gains in blue-chips amid contraction in exports.
The NSE 50-share also recovered by 60.20 points or 0.85% to close at 7,108.45 after moving in a range of 7,123.70 to 6,960.65.
The rupee plummeted to a 30-month low of 68.67 against the US dollar but made some fag-end recovery to close at 68.47, still down 9 paise, in line with a late rebound in domestic equities.
The domestic unit resumed lower at 68.50 as against Tuesday’s closing of 68.38 per dollar at the Interbank Foreign Exchange market and dropped further to 68.67 before finishing at 68.47, a loss of 9 paise or 0.13%.
Shares of Jindal Steel & Power continued to face selling pressure for a second day, plunging 3.47%% amid concerns over the company’s debt situation.
United Breweries Holdings also fell for a second session, falling by nearly 5%, after state-run Punjab National Bank declared Vijay Mallya as well as his group firms UBHL and long-grounded Kingfisher Airlines as ‘wilful defaulter’.
However, Dr Reddy’s rose by nearly 4% as the company will buyback around 44.85 lakh shares, accounting for about 2.6% of the existing paid up capital, for up to Rs 1,569 crore.
Overseas, European stocks were trading higher tracking an overnight Wall Street rally. Key indexes like France, Germany and the UK rose by 1.12% to 1.41%.
Asian stocks ended mixed, with investors cautious about an agreement among some major oil-producers to steady output. Key indexes in Asia, Hong Kong, Japan, Singapore and South Korea fell by 0.23% to 1.36% while China and Taiwan rose between 0.03% and 1.08%.