MUMBAI: Indian share prices closed up 2.27% on 6 March, snapping two days of sharp losses, in a relief rally as foreign funds bought into index stocks battered in last week’s global sell-off, dealers said.
They said sentiment improved as Asian markets recovered, offsetting further overnight losses on Wall Street.
The 30-share Mumbai stock exchange Sensex index jumped 282.05 points to 12,697.09. Software, telecom and banking stocks were main gainers.
At Tuesday’s close, the Sensex was down 13.34 % from its record close of 14,652.09 on 8 February as investors opted to take profits in face of global concerns of a slowdown in the US economy.
“The markets saw buying interest but were volatile as investors locked in gains throughout. The market breadth indicates that the markets could dip,” said Hiten Mehta, fund manager with Fortune Financial Services. “Inflation and higher (interest) rates will keep local markets rangebound,” he added.
Losers led gainers 1,459 to 1,080 on volume of Rs3816 crore ($857 million ). The rupee weakened against the dollar to 44.5 from 44.49 while it gained marginally against the euro at 58.4 from 58.5.
India’s second largest software exporter Infosys rose Rs109.7 or 5.47% to 2,116.3 while the country’s biggest cellular company Bharti Airtel rose Rs27.5 or 3.98% to 718.45.