Sensex zooms 305 points on value-buying, rupee recovery

Mumbai: Reversing a two-day meltdown, equity indices staged a smart pullback Wednesday as investors scooped up recently-hammered FMCG, metal and capital goods stocks amid a recovery in the rupee.
Sentiment was bolstered after the government said all steps will be taken to ensure the domestic currency does not depreciate to “unreasonable levels”, amid reports that Prime Minister Narendra Modi will take stock of the economic situation over the weekend. The BSE Sensex, which opened in the green, surged in late afternoon trade to finish higher by 304.83 points at 37,717.96.
The broader NSE Nifty too jumped 82.40 points to end at 11,369.90. The rupee rebounded from its historic low of 72.91 (intra-day) against the dollar to 71.86 in afternoon trade, while data showed that India’s exports grew by 19.21 per cent to USD 27.84 billion in August. The rupee had closed at yet another record low of 72.69 Tuesday.
Economic Affairs Secretary Subhash Chandra Garg said the government and the RBI will do everything to ensure that the rupee does not depreciate to “unreasonable levels”. The 30-share BSE Sensex, after a positive opening at 37,546.42, advanced to the day’s high of 37,752.58 on a flurry of buying by DIIs and retail investors. It finally settled 304.83 points, or 0.81 per cent, higher at 37,717.96. Intra-day, it also slipped into the negative zone to hit a low of 37,342.
The gauge had plunged about 977 points in the previous two sessions as global trade war tensions rattled investor optimism. The broader NSE Nifty, in a volatile session, recaptured the key 11,300-mark. It ended at 11,369.90, up 82.40 points or 0.73 per cent.
During the day, it moved between 11,380.75 and 11,250.20. Brent crude oil prices also eased to some extent after breaching the USD 79 a barrel mark. Buying activity picked up ahead of IIP and inflation data due later in the day as domestic investors accumulated recently-battered stocks amid a higher opening in European markets. (PTI)