Mumbai: A benchmark index of Indian equities markets yesterday closed in green for the first time in five trading sessions, gaining over 400 points or two per cent, even as the rupee fell to a new record low and concerns over the US stimulus programme grew.
The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 17,896.84 points, ended the day’s trade at 18,312.94 points, up 407.03 points or 2.27 per cent from the previous day’s close at 17,905.91 points.
The Sensex touched a high of 18,349.82 points and a low of 17,759.59 during the day. The gains came a day after it closed below 18,000- mark at 17,905.91 points — the lowest in 11 months.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) closed the day’s trade 105.90 points or two percent up at 5,408.45 points.
“A deep oversold Indian equities and uptick in the European bourses provided the uplift to Indian stocks, which has clocked gains of two percent on the broad indices,” said Anindya Banerjee, analyst, Kotak Securities.
“Expectation that government could lift ban on mining propped the banking shares upward. The weakness in the rupee, which touched a fresh life time low against the 65.56 did not have much impact on the equity markets, beyond intra-day volatility.”
The turnaround in the markets came despite rupee breaching the psychological resistance level of 65 against a dollar. This was the new record low for the rupee, and a consecutive sixth straight fall in a row session, after the US Federal Reserve hinted it would start scaling back stimulus as early as next month.