Recovering from nearly 8-month lows, the benchmark BSE Sensex gained over 236 points in early trade today, snapping its 6-session losing streak, on the back of a rebound in blue-chip stocks following value buying and positive cues from other Asian markets.
The mood also brightened after MSCI deferred inclusion of China A stocks to its benchmark indices, rather choosing to sort out regulatory issues, which triggered buying by foreign funds.
The 30-share index, which had lost 1,367.74 points in the previous six straight sessions due to RBI’s cautious stance on inflation and revival, and the spectre of drought, recouped 236.54 points, or 0.89 per cent, at 26,717.79.
Buying in stocks of realty, consumer durables, capital goods, healthcare and banking boosted trading sentiment.
Also, the NSE Nifty pulled back 71 points, or 0.89 per cent, at 8,093.40.
Brokers said value-based buying in blue-chips after recent losses amid a firming trend in other Asian markets helped.
Among other Asian markets, Hong Kong’s Hang Seng was up by 0.23 per cent while Japan’s Nikkei gained 0.38 per cent in early trade.
The US Dow Jones Industrial Average, however, ended 0.01 per cent lower in yesterday’s trade.
The rupee depreciated 11 paise to 64.03 against the US dollar in early trade today at the Interbank Foreign Exchange due to appreciation of the American currency overseas.
Forex dealers said increased demand for the dollar from importers also weighed on the local currency, but a higher opening in the domestic equity market limited rupee’s fall.
The rupee had closed higher by 16 paise at 63.92 against the American currency in yesterday’s trade on fresh selling of dollars by banks and exporters due to weakness of the greenback in the overseas market.
Meanwhile, the benchmark BSE Sensex rebounded 236.54 points, or 0.89 per cent, to 26,717.79 in early trade.
PTI