The benchmark BSE Sensex recovered about 121 points and the Nifty regained the 9,400-mark in early trade today on fresh buying by investors amid better- than-expected earnings. Speculators covering up their short positions ahead of the May derivatives contract expiry tomorrow added to the upward move.
The BSE 30-share barometer rebounded by 120.54 points, or 0.40 per cent, to 30,485.79. The gauge had lost 205.72 points in the previous session after investors booked profits amid volatile global cues in the aftermath of a terror attack in the UK.
Sectoral indices led by auto, capital goods, power, realty and metal were in the green, adding up to 0.99 per cent. The NSE Nifty was also higher by 22.35 points, or 0.24 per cent, to quote at 9,408.50.Traders said fresh spell of buying by retail investors and domestic institutions coupled with covering-up of outstanding short positions ahead of the May derivatives expiry helped recover the market.
Shares of Tata Motors surged 3.22 per cent to Rs 464.60 even as the company yesterday posted fall in its earnings for the quarter ending March 31, 2017. In Asian trade, Japan’s Nikkei was up 0.48 per cent while Shanghai Composite shed 0.45 per cent in early trade today. Hong Kong’s Hang Seng fell 0.04 per cent.
The US Dow Jones Industrial Average ended higher by 0.21 per cent yesterday.
The rupee edged higher by 9 paise to 64.80 against the dollar in early trade today at the Interbank Foreign Exchange on fresh selling of the US currency by banks and exporters. Forex dealers said a higher opening in domestic equity market also supported the rupee but the dollar’s strength against some currencies overseas, capped the rupee’s gain.
The rupee had slumped by a whopping 34 paise to end at a fresh seven-week low of 64.89 against the American currency in yesterday’s trade on the back of frantic dollar demand.