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Business News/ Market / Stock-market-news/  Markets, rupee rebound
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Markets, rupee rebound

Sensex rises 2.01% in biggest single-day gain since 15 Jan; rupee closes at 66.05 against the US dollar, up 0.15%

It was biggest gain for the Sensex and the Nifty since 15 January. Photo: Hemant Mishra/MintPremium
It was biggest gain for the Sensex and the Nifty since 15 January. Photo: Hemant Mishra/Mint

Mumbai: Benchmark equity indices rebounded on Thursday, logging their second-highest gains in 2015 and erasing some of the losses this week resulting from the China markets meltdown. In reaction to the sharp rise in the stock market, the rupee also edged higher against the US dollar.

The market won a boost from a surge in world equities and from short-covering on the day of expiry of the monthly derivatives contracts.

BSE’s 30-share Sensex closed 2.01%, or 516.53 points, higher at 26,231.19 points, while the National Stock Exchange’s (NSE) 50-share Nifty closed 2.02%, or 157.10 points, higher at 7,948.95 points.

It was biggest gain for the Sensex and the Nifty since 15 January.

Market breadth was positive with gainers beating losers in the ratio of 2.8:1

For the week so far, the Sensex and the Nifty are still down 4.15% and 4.23%, respectively.

“What we saw today was recovery supported by short-covering on the oversold side, and at the same time, intensity of selling pressure also came down," said Deven Choksey, managing director and chief executive of KR Choksey Shares and Securities Pvt. Ltd, pointing to the surge in world equities.

World markets headed higher on Thursday. European shares rose, boosted by gains in Asian and US markets after a US central bank official said the turmoil that has gripped world financial markets had weakened the case for a rate hike in September.

S. Hariharan, head of sales trading, institutional equities, at Emkay Global Financial Services Ltd, pointed out that rollovers in the domestic market were largely in line with the trend at 75%.

“...positions in September puts at lower strikes (7,500-7,800 strikes for Nifty) are relatively low, and hence, downsides will likely be gradual rather than the sharp moves seen this week," Hariharan said.

Meanwhile, the rupee closed at 66.05 against the US dollar, up 0.15% from its previous close of 66.14. The local currency had opened at 65.93 per dollar and touched a high and a low of 65.86 and 66.15, respectively. It is still down 0.32% so far this week.

“Today, bid under risk assets triggered a sharp rise in Asian currencies and that spilled over to the rupee as well. Rupee gained most against the carry currencies, euro and yen, appreciating 0.5-1% and marginally against the US dollar," said Anindya Banerjee, associate vice-president of currency derivatives at Kotak Securities Ltd.

Provisional data from the NSE showed that foreign institutional investors (FIIs) were net sellers of Indian shares to the tune of 3,347.35 crore, while domestic institutional investors (DIIs) were net buyers of Indian shares at 2,577.06 crore.

For the year to date, FIIs have bought a net of $5 billion in Indian shares. So far in August, they have sold a net of $2.1 billion of the asset class, and if such a sentiment continues for the rest of the sessions, it is set to be the worst such sale by them since August 2011.

DIIs have bought a net of 41,831.9 crore of shares so far this year. So far in August, they have bought a net of 14,922.4 crore of shares, and if the trend continues, it could be their highest such buying since January 2008.

In Thursday’s trade, all sectoral indices closed the day in the green. The BSE Consumer Durables index was up 5.11%—the most among sectoral indices. The BSE Realty index rebounded 4.02%, after being heavily battered in the carnage on Monday. It is still down 1.27% for the week.

The BSE Mid-cap and Small-cap indices were up 2.49% and 2.56%, respectively.

Only two Sensex companies closed lower. Financials contributed the most to the gains for the Sensex. Top private sector lender ICICI Bank Ltd advanced 1.85%, while smaller rival Axis Bank Ltd climbed 2.64%, and were the top contributors to the gains for the Sensex.

Mortgage lender Housing Development Finance Corp. Ltd closed 8.41% higher—registering its highest gain since 18 May 2009.

India’s biggest aluminium producer Vedanta Ltd and the country’s second-largest steel producer Tata Steel Ltd saw a bounce-back of 6.55% and 4.80%, respectively.

Reuters contributed to this story.

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Published: 27 Aug 2015, 09:25 AM IST
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