The country?s benchmark indices rose by more than 2% aided by the gain in IT stocks, which rallied on the hope that a weakening rupee could make the IT firms more competitive. The rupee fell to 48.06 to a dollar, weaker than Monday’s close of 47.81. On Tuesday, the Sensex rose 353.93 points or 2.1% to close at 17,099.28 while the broader 50 share NSE Nifty was up 108 points or 2.1% at 5,140.
Key indices in Asia Pacific mostly ended in the green on Tuesday, with the Straits Times and Kospi rising the most at 0.86% and 0.94%, respectively. The Nikkei 225 bucked the trend and declined the most at 1.6%. The MSCI Asia Pacific Index was up 0.28% as on 1030 GMT. The gauge had slumped 8.6% in August, the most since May 2010.
The Dow Futures was up 0.7 % or 81 points at 11,404 at 5.36 pm India time. All three major European indices, the FTSE, Dax and the CAC, were trading in the green, having gained over 1%. The indices advanced on hopes that the US Fed would provide more stimulus following the two-day meeting of the Fed Open Market Committee (FOMC). The FOMC may replace short-term treasuries in its $1.65 trillion portfolio with long-term bonds, a move known as ?Operation Twist? as it aims to bend the yield curve.
Yields on 10-year US treasuries were ruling at 1.96% compared with the previous day?s closing of 1.967%. Brent crude oil prices were ruling lower by $1.5 at 110.7 per barrel.
Back home, the Sensex has shed about 17% in the year to date this year amid negative newsflow from the US and euro zone and local worries about inflation and rising interest rates.
On Tuesday, FIIs bought shares worth R318 crore while domestic institutional investors sold shares worth R317 crore, BSE?s provisional estimates show. FIIs had sold $2.1 billion worth of equities in August, the biggest monthly outflow since October 2008, according to data compiled by Bloomberg. The 28 of the 30 Sensex stocks advanced. In the broader market, breadth was positive with 63% traded on the BSE ending higher.