Markets Rebound 100 Points as Oil Prices Rise Above $32/bbl

Sensex climbs 100 points, Nifty reclaims 7,450 mark as oil prices rise above $32 per barrel.

The Sensex started on a cautious note with a negative bias. (Photo: Reuters)

The benchmark Sensex rallied over 100 points from day’s low on Wednesday as crude oil prices rallied by over 2 per cent to trade above $32 per barrel mark.

The Nifty too was trading above its crucial support level of 7,450, supported by gains in power, consumer durable, and pharma stocks.

NTPC, pharma stocks like Dr Reddy’s and Sun Pharma, auto counters Tata Motors and Maruti and banking heavyweight SBI led the gains on the Sensex. Stocks like BHEL, HUL, Asian Paints led the losses.

Rupee Pulls Back

The rupee slips below the 68/$ mark, down 19 paise at 68.02 in early trade ahead of the outcome of US Federal Reserve’s two-day policy meet later in the day.

The domestic currency had closed at 67.83 against the greenback on Monday.

Asia Struggles Near 4-Year Low

Asian stocks struggled to hold early gains on Wednesday as several indicators screamed caution, and a relapse in oil prices made sentiment even more fragile ahead of a Federal Reserve policy statement due later.

Technology giant Apple’s forecast of its first revenue drop in 13 years signalled a risk of diminishing corporate profitability and more downgrades.

Despite a weak bounce of 0.6 percent, MSCI’s broadest index of Asia-Pacific shares outside Japan was holding near a four-year low hit last week. Australian shares fell 0.8 percent.

With Chinese stocks showing fresh signs of weakness after a 6.4 percent tumble in the previous session, Asia failed to draw much support from an overnight bounce on Wall Street, where upbeat earnings results and a bounce in crude oil pushed up the Dow 1.8 percent and the S&P 500 1.4 percent.