Sensex Recovers 400 Points from Lows

BSE Sensex and Nifty were choppy on Wednesday, amid volatility in global markets and a fall in the rupee. Despite policy moves by the China central bank on Tuesday to support the economy, investors remained jittery, worrying that the fresh rate cuts would not be enough to stabilise the world’s second largest economy or halt falls in global equity markets.

At its day’s low, the Sensex fell as much as 344 points while Nifty hit 7,785. But a recovery in China markets helped Sensex to come off lows. The Sensex at its day’s high rose to 26,063 – a swing of nearly 375 points from the day’s lows. At 10:27 a.m., the Sensex was down 37 points at 25,994.

China’s stock markets were very volatile with Shanghai Composite trading 0.80 per cent higher after falling nearly 4 per cent in early trade. Most of the Asian markets were higher today, tracking recovery in China markets.

The rupee slipped to 66.36/dollar in early trade today after opening at 66.22. Analysts say that besides global markets, the value of the rupee holds key to the fortunes of Indian markets. Yesterday, the rupee posted its biggest gain of the year to close at 66.10/dollar. The rebound in rupee and renewed hopes on the GST Bill had helped Sensex rise nearly 300 points on Tuesday.

Analysts say that unless selling pressure from foreign institutional investors abates, Indian markets are unlikely to gain a steady footing.Foreign institutional investors hold nearly 25 per cent of BSE 200 stocks.

In contrast, domestic investors bought stocks worth Rs 1,963 crore on Tuesday. They have been big buyers of Indian stocks for the last four days, offering some support to Sensex and Nifty.

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Source:Ndtv

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