Sensex zooms 305 points on value-buying; Rupee rebounds

Mumbai: Market benchmark Sensex on Wednesday surged about 305 points to end at 37,717.96, spurred by bargain-hunting in FMCG, metal and capital goods stocks amid a recovery in the rupee.
The broader Nifty too regained the key 11,300-mark. Sentiment got a boost after the rupee rebounded from its historic low of 72.91 (intra-day) against the dollar to 71.86 in late afternoon trade, while India’s exports grew by 19.21 per cent to USD 27.84 billion in August, brokers said.
Meanwhile, Economic Affairs Secretary Subhash Chandra Garg said the government and the RBI will do everything to ensure that the rupee does not depreciate to “unreasonable levels”.
The rupee had closed at yet another record low of 72.69 yesterday. The 30-share BSE Sensex, after a positive opening at 37,546.42, advanced to the day’s high of 37,752.58 on a flurry of buying byDIIs and retail investors. It finally settled 304.83 points, or 0.81 per cent, higher at 37,717.96. Intra-day, it also slipped into the negative zone to hit a low of 37,342.
The gauge had plunged about 977 points in the previous two sessions as global trade war tensions rattled investor optimism. The broader NSE Nifty, in a volatile session, recaptured the key 11,300-mark. It ended at 11,369.90, up 82.40 points or 0.73 per cent. During the day, it moved between 11,380.75 and 11,250.20. Brent crude oil prices also eased to some extent after breaching the USD 79 a barrel mark.
Buying activity picked up ahead of IIP and inflation data due later in the day as domestic investors accumulated recently-hammered stocks amid a higher opening in European markets. However, most other Asian markets extended losses for the sixth straight session as investors fear an escalation in the China-US trade conflict.
Meanwhile, domestic institutional investors (DIIs) bought shares worth Rs 749.62 crore, while foreign portfolio investors (FPIs) sold equities worth Rs 1,454.36 crore on a net basis Tuesday, provisional data showed. Stock Exchanges will remain shut Thursday on account of ‘Ganesh Chaturthi’.