Sensex Stages Smart Recovery After China Reverses Earlier Losses
Sensex climbs 100 points and Nifty reclaims 7,800 as China recovers after opening with deep cuts.
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The market bounced back in early trade Tuesday on short covering after getting butchered in the previous session amid Chinese sell-off. The S&P BSE Sensex surged over 100 points in morning trade, led by gains in HDFC, ICICI Bank, L&T, Tata Motors, Sun Pharma, and RIL.
The Nifty reclaimed its crucial psychological level of 7,800 supported by gains in realty, power, oil & gas, capital goods, and metal stocks.
The rupee rose 11 to 66.50 against the US dollar in early trade on Tuesday as currency markets globally stabilise a bit following a sharp fall on Monday on China woes.
The domestic currency had tumbled 47 paise to 66.61 against the greenback in the previous trading session.
Asian markets recovered from Monday’s sharp selloff while Chinese markets tumbled at opening before quickly erasing early losses. Japan’s Nikkei was up 04 per cent while the South Korean Kospi traded higher by 0.85 per cent. Hong Kong’s Hang Seng index edged lower by 0.12 per cent. China’s Shanghai Composite traded with smart gains of 0.75 per cent.
US stocks, meanwhile, closed lower on Monday, weighed by renewed concerns of global economic slowdown and increased tensions in the Middle East.
European markets too slumped to close sharply lower following a sell-off in Chinese stocks and heightened geopolitical tensions.
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