The benchmark BSE Sensex recovered by over 111 points in early trade today after two sessions of sharp losses, on value-buying by investors amid a firming trend at other Asian markets.
The 30-share index rebounded by 111.64 points, or 0.41 per cent, to 26,948.84, with stocks of oil & gas, capital goods, IT, realty and infrastructure sectors leading the recovery.
The gauge had lost 1,011.79 points in the previous two sessions after RBI took a cautious stance on the economic recovery and fears of a drought in the country after the Met department projected monsoon this year to be “deficient”.
Also, the NSE Nifty was up 24.95 points, or 0.30 per cent, at 8,160.05 in early trade.
Brokers said value-buying in recently beaten-down blue-chip stocks, coupled with a firming trend at other Asian markets tracking overnight gains in the US following solid private sector job data, influenced sentiment here.
Among other Asian markets, Japan’s Nikkei rose 0.32 per cent while Hong Kong’s Hang Seng gained 0.33 per cent in early trade today.
The US Dow Jones Industrial Average ended 0.36 per cent higher in yesterday’s trade.
Extending its slide for the second straight day today, the rupee breached the 64 mark by falling 35 paise to 64.25 against the dollar in early trade today on sustained capital outflows by foreign funds amid appreciation of the American currency against others overseas.
Besides, increased demand for dollar from importers and banks weighed on the local currency, forex dealers said.
However, they said, a higher opening in the domestic equity market, capped the rupee’s fall.
The rupee had closed 8 paise lower at 63.90 against the US dollar in yesterday’s trade due to steady demand for the greenback from importers amid sliding equities.
Meanwhile, the benchmark BSE Sensex recovered 111.64 points, or 0.41 per cent, to 26,948.84 in early trade.
PTI