Sensex, Nifty surge; Rupee stabilizes with low oil prices
Breaking its three-session losing spree, the BSE benchmark Sensex surged over 373 points on emergence of buying mainly in auto, FMCG and banking stocks as a sustained recovery in rupee and moderate crude oil prices buoyed investor sentiments.
Similarly, the NSE Nifty rose nearly 102 points to regain the 10,600 level. Also, the benchmark indices gained tracking positive global cues and improving the macroeconomic scenario.
Analysts said that markets likely reacted to the positive backdrop, as well as indications that the NBFC credit squeeze is abating.
The Indian rupee appears to have stabilised a bit after recording a string of heavy losses last month. This recovery is driven by a sharp drop in global crude oil prices and improving prospects for the domestic economy.
Banking stocks rallied after the government's announcement of Rs 42,000 crore fund infusion in the state-owned banks by March-end.
Market analysts said recapitalisation announcement to PSU banks is likely to provide respite to current liquidity issues, which also boosted the sentiment.
The rupee remained firm near 70.68 against the US dollar, as global crude prices slipped below the USD 60 per barrel mark.
On a net basis, foreign portfolio investors (FPIs) bought Rs 446 crore worth of domestic stocks on Thursday and domestic institutional investors (DIIs) were net buyers to the tune of Rs 49.68 crore, provisional data available with BSE suggested.
European markets too were strong in their late morning deals. Frankfurt's DAX was up 1.18 per cent, while Paris CAC 40 rose 1.31 per cent. London's FTSE too climbed 0.97 per cent.
(With inputs from agencies.)