Early trade saw equity benchmark indices rise over 300 points, but foreign capital outflows, Middle East concerns, and US Federal Reserve interest rate decisions caused volatility. Tata Motors, Bajaj Finserv, and HDFC Bank benefited. The rupee fell versus the US dollar, but domestic shares rose…
Equity benchmark indices rose over 300 points early Tuesday, but investors fled amid foreign fund outflows and Middle East tensions. Traders claimed investors were wary before the US Federal Reserve’s interest rate decision.
Early trade saw the 30-share BSE Sensex rise 339.67 points to 64,452.32. The Nifty rose 92.8 points to 19,233.70. Both benchmark indices traded flat later in a turbulent trade. The 30-share BSE benchmark fell 44.50 points to 64,068.15, and the Nifty fell 7.85 points to 19,133.05.
Tata Motors, Bajaj Finserv, Asian Paints, Bajaj Finance, State Bank of India, Power Grid, ITC, and HDFC Bank led those Sensex gains. Laggards included Bharti Airtel, UltraTech Cement, Infosys, Mahindra & Mahindra, JSW Steel, and Maruti.
US and Asian markets
Tokyo rose, but Seoul, Shanghai, and Hong Kong fell. US markets rose sharply on Monday. Brent oil rose 0.41 percent to USD 87.81 a barrel.
FIIs sold Rs 1,761.86 crore in shares on Monday, according to market data. The BSE benchmark rose 329.85 points (0.52%) to 64,112.65 on Monday. The Nifty rose 93.65 points (0.49%) to 19,140.90.
Indian rupee nearly steady against US dollar
In early trade on Tuesday, the rupee rose 1 paisa against the US dollar as rising crude oil prices and a strong US dollar offset favorable local equities. Forex traders said safe-haven demand boosted the dollar.
Domestic equities rose, supporting the currency at lower levels.
At the interbank foreign exchange, the rupee traded narrowly. Local currency opened at 83.26 per dollar. It opened at 83.25 against the dollar, up 1 paisa.
Conclusion
Tuesday’s equity benchmark indices rose early but turned volatile due to foreign money withdrawals and Middle Eastern concerns. Investors were apprehensive before the US Federal Reserve’s interest rate announcement. The 30-share BSE Sensex rose 339.67 points to 64,452.32 and the Nifty 92.8 points to 19,233.70. Tata Motors, Bajaj Finserv, Asian Paints, Bajaj Finance, SBI, Power Grid, ITC, and HDFC Bank gained. Laggards included Bharti Airtel, UltraTech Cement, Infosys, Mahindra & Mahindra, JSW Steel, and Maruti.
Tokyo was green, Seoul, Shanghai, and Hong Kong were lower. Brent crude rose 0.41 percent to USD 87.81 a barrel on Monday, lifting US markets. Foreign institutional investors sold Rs 1,761.86 crore in stocks on Monday. Early trade saw the rupee rise 1 paisa against the US dollar as rising crude oil prices and a strong US dollar offset favorable domestic equities.
