Sensex closed 0.33% up on 2 August despite local investors selling equities on concern that FIIs may exit emerging markets over US credit woes.
The markets saw a brief relief rally, but investors unwound positions in late afternoon trade, fearing further volatility across global markets.
The 30-share sensitive index closed 49.93 points up to 14,985.7, off a day’s high of 15,134.53.
The market plunged 3.96%, its second sharpest fall for the year, on Wednesday.
Overseas funds this week led the sell-off sparked by heavy losses on Wall Street after further problems in the US home loan market while Indian banks were hurt by Tuesday’s increase in their cash reserve requirement.
“There is a clear link with global equity trends. We expect some weakness in the days ahead,” said Manoj Kakaiya, dealer with brokerage ULJK Securities.
At 2.00 p.m.
The markets continued to trade into the positive territory after a weak start. Stocks from the pharma, banking, cement and power sectors are leading the pack of gainers.
The BSE Sensex was up 178.33 points at 15,114 at 1.55 p.m.
while the NSE Nifty was up 50.70 points at 4,397 points.
The stock markets rebounded from the biggest fall in four months after U.S. markets reversed losses on easing concern about the nation’s subprime mortgage market. Reliance Industries Ltd., India’s most valuable company, rose.
As per a leading business daily, the government is likely to clear the price quoted by Reliance Industries (RIL) for its gas from the Krishna-Godavari basin without seeking to control the price.
RIL, along with partners Oil and Natural Gas Corporation (ONGC) and British Gas, is selling gas from the Panna-Mukta and Tapti fields for around $4.75 per million British thermal unit (mbtu). It has discovered a price of $4.33 per mbtu for its K-G basin gas. If the order is passed, the fertiliser and power industry, which consumes around 70% of the gas would not get the supplies at the current subsidised rate of less than $3 per mbtu. However, RIL would stand to gain, as it would get higher realisations. The stock is up 2%, while ONGC is trading flat.
“Our markets are tracking the global markets,” said Jayesh Shroff of SBI Funds Management talking to Bloomberg.
U.S. stocks rose after a rally in computer and consumer shares lifted the Dow Jones Industrial Average 150 points in the last 20 minutes of trading. The Standard & Poor’s 500 climbed after falling below its 200-day moving average for the first time in a year.
Overseas investors bought a net Rs4.34 billion ($107 million) of Indian shares on July 31, according to figures published by the National Stock Exchange on its Web site
The Bombay Stock Exchange benchmark Sensex gained 104 points in the morning trade today on emergence of buying by funds owing to attractive share prices.
The BSE-30 share index opened at 15,022.87 points, up 87.10 points from yesterday’s (1 August) close of 14,935.77. The index which, tanked 615 points on I August, gained 104 points at 15,040.34 points in few minutes of trading.
The wide base National Stock Exchange’s Nifty was up by 29.30 points at 4,375.15.
Marketmen said the market rebounded on buying by funds in heavyweight stocks, which had gone down due to weak overseas trend.