The domestic equity markets rebounded from last week’s weak run. The Sensex rose 150 points at the open but pared some gains thereafter. The Nifty held on to its 7,550 mark.
FMCG stocks led the benchmark index higher; ITC topped the list of Sensex stocks - surging over 6 percent after brokerages turned upbeat on the stock following the company’s fourth quarter earnings.
Citi has upgraded the stock to buy from neutral and raised target price to Rs 390 from Rs 335.
Apart from ITC, Adani Ports, Bharti, Tata Motors, HUL, ICICI Bank were the other gainers on the Sensex while Cipla, Sun Pharma, Infosys, ONGC and HDFC were among the major losers.
Rupee Strengthens
The rupee recovered 19 paise to 67.25 against the dollar in early trade on increased selling of the US currency by exporters and banks amid a higher opening in the domestic stock market.
Forex dealers said weakness in the dollar against other currencies overseas supported the rupee. Further, a higher opening in the domestic equity market added to the upside.
Turnaround in Asian Markets
Asian shares rose after a solid session on Wall Street, while the dollar moved away from recent highs though remained supported as investors bet that the US Federal Reserve was on track to raise rates sooner rather than later.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6 percent, after U.S. shares rallied on Friday, shrugging off growing expectations of further tightening in monetary policy.
But Japan’s Nikkei stock index extended losses, shedding 1.1 percent on worrying economic data and reports that Japan’s sales tax increase would proceed as planned.
(With agency inputs)
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