805.85, Infosys by 2.37 per cent to Rs 3,023.30 and ITC by 2.58 per cent to Rs 307.95.
Anindya Banerjee, Currency Analyst, Kotak Securities:
ďA deep oversold Indian equities and uptick in the European bourses provided the uplift to Indian stocks, which has clocked gains of 2% on the broad indices.
Expectation that government could lift ban on mining propped the banking shares upward. The weakness in the Rupee, which touched a fresh life time low against the USD at 65.56 did not have much impact on the equity markets, beyond intra-day volatility. Over the near-term we see 65.50/60 as a supply point on the Dollar/Rupee, so as long as it holds, a range of 64.00 to 65.50 could unfold. However, a break above 65.60 could expose 66.50/67.00 levels.Ē
Indian shares snap 4-day losing streak; foreign flows key
(Reuters) Indian shares surged more than 2 percent on Thursday, snapping a four-day losing streak, as metal stocks rallied on China's improved manufacturing data, while blue chips rose on value buying.
Stocks battered in each of the last four days marked their biggest single-day percentage gain in nearly two months, after an upbeat reading on China's manufacturing sector, followed by a recovery in the rupee from a record low of 65.56 hit earlier in the day.
However, traders remain wary of foreign flows and rupee volatility at a time when overseas investors who had been net buyers of Indian stocks in 2013 sold a net $500 million worth of shares in the four sessions through Wednesday.
"There is no panic selling by foreign investors yet, but certainly if that happens then it may weigh on equity and currency, which may feed on each other," said G. Chokkalingam, managing director and chief investment officer at Centrum Wealth Management.
The equity market does not have adequate depth