Benchmark indices rebounded in early trade on Tuesday, after a sharp decline in the previous trade, amid buying in IT stocks and recovery in Japanese markets.
Representative image
Indian stock markets rebounded in early trade on Tuesday after a steep drop the previous day, boosted by advances in IT sectors and a recovery in Japanese markets. The BSE Sensex jumped 348.1 points to 84,647.88, while the NSE Nifty gained 96.75 points to 25,907.60, reported PTI.
ADVERTISEMENT
According to the report, among the 30 Sensex businesses, Tech Mahindra, Larsen & Toubro, State Bank of India, Bajaj Finserv, Infosys, and Power Grid all saw significant gains. Asian Paints, JSW Steel, Tata Steel, and Titan were among the underperformers.
Tokyo markets rose, but South Korea, Hong Kong, and mainland Chinese markets were closed due to public holidays, with China being closed for the remainder of the week, the report added.
On Monday, Foreign Institutional Investors (FIIs) sold shares worth Rs 9,791.93 crore, while Domestic Institutional Investors (DIIs) bought shares worth Rs 6,645.80 crore.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, FII selling is expected to be countered by DII purchasing, preventing long-term market damage.
"FII selling is likely to be absorbed by DII buying and, therefore, it is unlikely to do serious long-term damage to the market. The unusual volatility in stock markets is reflected in the 8 per cent spike in Shanghai Composite index and the 4.8 per cent crash in Nikkei index yesterday," Vijayakumar told PTI.
He added, "This extreme volatility is likely to stabilise soon."
Meanwhile, Brent crude oil prices fell by 0.29 per cent to USD 71.77 per barrel.
Rupee falls 2 paise to 83.81 against US dollar
In early trade on Tuesday, the rupee dropped 2 paise to 83.81 against the US dollar, following a significant outflow of foreign funds amidst erratic international markets.
Forex traders claimed that the US dollar's strength versus the country's main competitors was hurting the Indian rupee, although the rupee's sharp decline was tempered by falling crude oil prices and a rebound in home equities markets. They argued that investors chose the more successful Chinese markets, and that China's announcement of monetary and fiscal stimulus caused the outflow of international capital.
The INR began at 83.81 versus the US dollar at the interbank foreign exchange, down 2 paise from its closing level. The rupee ended the day 10 paise weaker than the US dollar, at 83.79.
With PTI inputs
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
