Sensex surges 424 pts at close on Chinese markets' recovery, Re rebounce

Mumbai: Domestic shares bounced back sharply on Tuesday, snapping two-session fall, while benchmark Sensex recaptured the crucial 25,000 mark as recovery in Chinese stock markets and firm European indices prompted investors back home to go for bargain hunting in the several recently beaten-down stocks. Halt in rupee’s fall today, which saw the domestic currency appreciate 20 paise to 66.61 against the greenback also boosted the sentiment, as the recent fall had triggered massive overseas fund outflows from the local shares. [caption id=“attachment_2425916” align=“alignleft” width=“380”] Reuters[/caption] Today, the 30-share BSE S&P Sensex ended the session at 25,317.87, up 424.06 points, or 1.7 percent from previous close. Although the markets were wobbly in the first hour of trades, the index gained momentum thereafter and notched up significant gains to touch the day’s high of 25,411 in late trades, up 517 points. In a market marked with extreme volatility, the index lost nearly 900 points in last two sessions and plunged nearly 1,500 points in the past one week, tracking global markets sell-off. The broader 50-share CNX Nifty also ended higher at 7,688.25, up 129.45 points, or 1.7 percent. In the broader market, gainers outnumbered losers as 1,464 stocks advanced while 1,185 declined and 122 remained unchanged on BSE. Among other Asian indices, key Chinese indices ended over 3 percent even as the data showed August exports fell 6.1 percent in August from a year ago period while imports declined 14.3 percent. Exports were expected to drop 6.0 percent in August in dollar terms compared with a year earlier, after dipping 8.3 percent in July, a median forecast of 20 analysts polled by Reuters showed. However, falling imports once again raised concern that slowing economy is beginning to hurt the overall demand scenario. “It’s a global market-led recovery but the undertone of the market still remains weak and volatility may persist for some more time, as globally things continue to remain the same,” said G Chokkalingam, founder and managing director, Equinomics Research & Advisory. “Once the currency market stabilises, FIIs will stop selling in Indian shares. Although, our fundamentals are still good, global markets uncertainty will continue to dictate the sentiment for some more time,” said Deven Choksey, MD and CEO, KR Choksey Shares and Securities. Investors lapped up several old economy stocks, which faced sharp correction in recent sessions. Among the gainers, shares of Gail flared up 6.5 percent to Rs 295.05, Tata Steel soared 6 percent to Rs 228.80, BHEL shot up 5.6 percent to Rs 212.20, Axis Bank jumped 5.1 percent to Rs 473.65, ICICI Bank rose 4.7 percent to Rs 261.10, Vedanta gained 3.9 percent to Rs 93.45 and L&T was up 3.6 percent at Rs 1,564.60.