Sensex shrugs rupee fall, rises 407 pts on China recovery
The Sensex on Thursday bucked the trend of falling along with the rupee, by rising 407.03 points, or 2.27%, to close at 18,312.94 points. HT reports.business Updated: Aug 22, 2013 21:03 IST
The Sensex on Thurs­day bucked the trend of falling along with the rupee, by rising 407.03 points, or 2.27%, to close at 18,312.94 points.
The Sensex swung 590 points between the day’s high of 18,349.82 and low of 17,759.59 before closing at 18,312.94.
“The PMI (Purchasing Managers Index) data from China was very strong,” says AK Prabhakar, senior vice-president and head of equity research (retail), Anand Rathi Financial Services. Thus, metals and commodity stocks surged, lifting the markets.
“There was a bounce-back as levels had been beaten down in recent sessions,” says Tirthankar Patnaik, director, Religare Capital Markets.
Also, there was no negative news from the Federal Open Markets Committee about withdrawal of QE. Thus, overselling in the recent sessions was one of the reasons markets bounced back.
Metals stocks led the rally on Thursday, with the metal’s index gaining by 8.23% in the rally on positive China data. Metal companies like Sesa Goa (up 13.10%), Hindalco (up 10.93%), Sterlite (up 10.42%) and Tata Steel (up 10.22%) were the top gainers on.