MUMBAI In a highly volatile session, value-buying by investors in recently battered banking, oil & gas and auto stocks reversed the three-session losing streak, helping the Sensex and Nifty to close on a positive note on Monday.
The Sensex swung over 660 points both ways on alternate bouts of selling and buying. The 30-share Sensex touched a high of 34,636.43 on the back of sustained buying by domestic institutional investors (DIIs), but later turned choppy and hit a low of 33,974.66 as selling pressure gathered momentum. However, amid buying towards the fag-end, it recovered to close the day higher by 97.39 points, or 0.28 per cent, at 34,474.38.
The 30-scrip gauge had lost 2,149.15 points in the previous three straight sessions. The 50-share NSE Nifty too recovered by 31.60 points, or 0.31 per cent, to end at 10,348.05.
During the session, it moved between 10,198.40 and 10,398.35. Besides value buying, covering-up of short positions by investors also aided the recovery in the market. Meanwhile, global cues remained negative with Asian markets leading the sentiment.
Chinese stocks, in their first trading day after a one-week holiday, tumbled even though Beijing’s central bank increased liquidity to offset the impact of an escalating trade dispute with the US.
China’s central bank said on Sunday that it was cutting the reserve requirement rations (RRRs) by 1 per cent from October 15 which will inject a net USD 109.2 billion in cash into the banking system, amid a deepening trade war with the US that has increased pressure on growth in the world’s second largest economy. European markets too weakened in early session.
On a net basis, domestic institutional investors bought equities worth Rs 1,902.07 crore in the previous session Friday, while foreign funds sold shares worth a net of Rs 3,370.14 crore, provisional data showed.
Rupee slumps to close at record low
The rupee slumped by 30 paise to finish at a fresh lifetime low of 74.06 against the US dollar on Monday amid strengthening of the greenback and steady capital outflows.
The rupee had opened lower by 14 paisa against Fridays close of 73.76 in early trade as the US dollar strength against major global currencies weighed on the rupee sentiment.
At the Interbank Foreign Exchange (Forex) market, the local currency opened lower at 73.89 a dollar against its previous closing of 73.76.
It recovered to a high of 73.76, but failed to sustain the momentum and plunged to 74.10 and finally closed at 74.06, down by 30 paise, marking its fifth straight session of decline.
On Friday, the domestic unit plummeted by 18 paise to end at 73.76.
Be Part of Quality Journalism
Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast.