The equity benchmark Sensex on Tuesday recouped nearly 332 points following robust buying in energy, infra and banking stocks amid easing crude oil prices and strong recovery in the rupee. Similarly, the broader NSE Nifty jumped over 100 points to cross the key 10,500 level.
However, most Asian markets ended lower after a rout in tech stocks, tracking a hefty sell-off on Wall Street, while the dollar hit a 16-month peak on safe haven bets amid China-US trade war worries.
Concerns about a slowdown in China and the Asian region due to US tariffs on Chinese goods spooked investors, sparking the largest monthly foreign fund outflows from Asia last month since August 2011.
However, investor sentiments in domestic markets remained upbeat due to fresh foreign fund inflows and the rupee gains.
The domestic currency on Tuesday staged a strong comeback by strengthening 37 paise to 72.52 (intra-day) against the American currency.
Besides, the global benchmark Brent crude trading 0.98% lower at USD 69.43 per barrel helped ease concerns on the country’s current account deficit front.
“Despite volatility in global markets, Nifty gained nearly 1% supported by sharp fall in oil prices. Softening of CPI inflation to 3.31%, India’s stable industrial production and gains in INR added to the positives. Decline in oil prices below USD 70/barrel is likely to invoke positive sentiments for domestic market in the near term,” Vinod Nair, Head of Research, Geojit Financial Services Ltd, said.
The BSE 30-share Sensex after resuming a tad higher at 34,846.90 quickly slipped into the negative zone to touch a low of 34,672.20, largely in sync with global sell-off.
However, hectic buying in late afternoon trade reversed the day’s losses and helped the Sensex hit a high of 35,185.17 before settling 331.50 points, or 0.95%, higher at 35,144.49.
The gauge had lost 425 points in the previous two sessions.
The broader NSE Nifty after shuttling between 10,451.90 and 10,595.75 finally concluded 100.30 points, or 0.96%, higher at 10,582.50.
Domestic market sentiments were upbeat about the fall in consumer inflation data for October.
Retail inflation fell to a one-year low of 3.31% in October on the back of cheaper kitchen staples, fruits and protein-rich items, official data released Monday showed.
Industrial production, however, grew at the slowest pace in four months at 4.5% in September.
On a net basis, Foreign institutional Investors (FIIs) bought shares worth ₹832.15 crore, while domestic institutional investors (DIIs) sold shares of ₹1,073.84 crore Monday, provisional data showed.
Among the Sensex constituents, ICICI Bank emerged as the best performer, surging by 2.44%, followed by NTPC at 2.36%.
Shares of Coal India, the country’s largest miner, climbed 0.51% after it posted an over eight-fold rise in consolidated net profit to ₹3,085 crore for the quarter to September 2018.
Other big gainers were Axis Bank 2.05%, RIL 1.93%, L&T 1.77%, HDFC Ltd 1.62%, Adani Ports 1.49%, M&M 1.39%, Yes Bank 1.28%, Hero MotoCorp 1.27%, Vedanta 1.18%, ITC Ltd 1.11%, HUL 1.11%, Tata Steel 1.07%, TCS 1.04%, Maruti Suzuki 1.02%, Asian Paint 0.73%, Bharti Airtel 0.71% and Wipro 0.69%.
Kotak Bank, Bajaj Auto, ONGC, HDFC Bank, Bharti Airtel, Infosys and SBI too ended higher with gains up to 0.61%.
However, Sun Pharma plunged 4.72% ahead of quarterly earnings to be released later in the day.
Tata Motors, PowerGrid and IndusInd Bank also retreated up to 3.31%.
Shares of oil marketing companies and aviation operators were back in better shape after the global benchmark Brent crude slipped below the the USD 70-mark.
State-run IOC, BPCL and HPCL recorded gains up to 4.47%.
In the aviation space, shares of Jet Airways and Interglobe gained up to 5.21%.
In sector terms, the BSE energy index surged the most by gaining 1.80%, followed by infrastructure 1.37%, capital goods 1.25%, bankex 1.01%, auto 0.93%, metal 0.77%, PSU 0.75%, power 0.75%, FMCG 0.72%, IT 0.39% and teck 0.37%.
Healthcreand realty sectoral indices ended in the red, falling up to 0.81%.
Towards the broader market, the small-cap and mid-cap indices ended higher by 0.50% and 0.46per cent respectively.
In Asian, Japan’s Nikkei plugned 2.06%, Korea’s KOSPI fell 0.44% and Taiwan Index fell 0.56%. Hang Seng, however, rose 0.25% while Shanghai Composite Index advanced0.93%.
Key indices in european markets such as Paris CAC 40 was up 0.49%, while Frankfurt’s DAX gained 0.51% in their late morning deals. London’s FTSE too rose 0.34%.
