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Sensex recovers over 196 points on sharp fall in crude prices, OMC stocks rally
Market sentiment got a boost after crude oil prices in global markets dropped by over 4% on Monda owing to oversupply fears, helping the rupee to strengthen against the dollar, brokers said.
Ewuity benchmark BSE Sensex on Tuesday rebounded by over 196 points to close at 36,519.96 as oil, metal and PSU stocks rallied after a sharp drop in global crude oil prices.
Sentiment got a boost after crude oil prices in global markets dropped by over 4% on Monda owing to oversupply fears, helping the rupee to strengthen against the dollar, brokers said.
Besides, reports that the finance ministry is likely to infuse about ₹10,000 crore within a few days in some state-owned lenders including PNB, Corporation Bank and Central Bank of India, to help them meet regulatory capital requirement too accelerated the buying pace, they added.
Investors were also awaiting US Federal Reserve Chairman Jerome Powell’s first congressional testimony for hints on the pace of interest rate hikes, they added.
After a positive opening, the 30-share BSE Sensex advanced to a high of 36,549.55, but profit booking in heavyweight HUL, ITC and Infosys trimmed its gains.
The barometer touched a low of 36,261.78 before settling at 36,519.96, a gain of 196.19 points, or 0.54%.
The gauge had retreated from record closing level by losing 224.64 points in the previous two sessions.
The 50-share NSE Nifty settled higher by 71.20 points, or 0.65%, at 11,008.05. It shuttled between 11,018.50 and 10,925.60 in day trade.
“Oil & gas, banking and pharma sector stocks stole the show, lifting Sensex to almost a new high,” said Manoj Choraria, a Delhi-based NSE broker.
Foreign portfolio investors (FPIs) sold shares worth a net ₹625.68 crore while domestic institutional investors (DIIs) net sold shares worth ₹70.30 crore on Monday.
