However, there could be plenty of intraday volatility
The Indian market continued to act in sympathy with the global markets on Tuesday. After a huge crash across all markets yesterday, today the Asian markets were all mostly up except that of China and Japan, while European markets were trading sharply higher and so were US futures. This rubbed off on the Indian markets which staged a modest rally. Global markets also got a boost with a surprise rate cut by China in later afternoon.
The barometer 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 25,916.26 points, closed at 26,032.38 points -- up 290.82 points or 1.13% from its previous close at 25,741.56 points. The Sensex touched a high of 26,124.83 points and a low of 25,298.42 points during intra-day trade. The broader 50-share CNX Nifty closed higher at 7,880.70 points, with a gain of 72 points, or 0.92%.
The Indian rupee also gained in strength. It touched an intra-day high of 65.87 and closed with a gain of 56 paise at 66.08 to a US dollar from its Monday's close of 66.64.
Analysts said that Monday's massive correction has made valuations attractive. There is also a sense that the strong economic fundamentals have the potential to hasten the recovery in Indian equity markets in comparison to other larger economies. Other analysts pointed-out the lull in the global commodity prices, especially crude oil which has fallen to its six-year low as a major positive for the Indian economy and the markets.
The unexpected move by the People's Bank of China (PBOC) to go in for an inter-policy rate cut on Tuesday will be a positive support to the Indian markets on Wednesday. The announcement came in after market hours in India.
Sector-wise, healthy buying was observed in banking, automobile, oil and gas, metal and healthcare stocks. However, only information technology (IT) scrip came under selling pressure.
Major Sensex gainers in Tuesday's trade were: Vedanta, up 7.73% at Rs.86.45; Tata Motors, up 6.30% at Rs.329.20; Coal India, up 5.23% at Rs.353.90; ICICI Bank, up 5.06% at Rs.283.50; and Axis Bank, up 4.18% at Rs.502.40.
The major Sensex losers were: HDFC, down 1.82% at Rs.1,145.60; Maruti Suzuki, down 1.20% at Rs.4,199.45; Infosys, down 0.56% at Rs.1,086.50; Larsen and Toubro (L&T), down 0.48% at Rs.1,625.60; and Tata Consultancy Services (TCS), down 0.46% at Rs.2,567.35.
Among the Asian markets, Japan's Nikkei fell by 3.96% and China's Shanghai Composite Index lost 7.63%, However, Hong Kong's Hang Seng gained 0.72%.
In Europe, London's FTSE 100 index was up by 2.85%, French CAC 40 by 4.44% and Germany's DAX Index was higher by 4.59% at time of this piece was written.
The top gainers and top losers in major indices are given in the table below:
The closing values of major Asian indices are given in the table below: