The BSE Sensex surged 540 points or 2.8 per cent on Tuesday as the Indian rupee neared 64 per dollar mark. The broader Nifty traded over 160 points higher.
The trigger for sharp gains in Indian stocks was an over 1.5 per cent gain in the Indian rupee. The partially convertible rupee hit a high of 64.17 and is on track for its fourth straight day of gains after snapping a three-week losing streak.
As of 10.20 a.m., the rupee traded at 64.21 as against Friday's close at 65.24 per dollar. The rupee tracked higher euro, which gained against the dollar after disappointing US jobs data raised hopes that the Fed Reserve may be hesitant to announce tapering of stimulus as early as next week.
A surge in exports also helped sentiments. India's merchandise exports posted double-digit growth in the month of August, while imports were "contained", trade secretary S. R. Rao said on Monday, offering some respite for the troubled rupee. Official data is due later this week.
Sentiment in the currency has improved since Reserve Bank of India governor Raghuram Rajan unveiled a slew of proposals to support the rupee and open up markets on Wednesday, providing a breath of fresh air for investors unnerved by the country's worst economic crisis in two decades.
Gaurav Kapoor of RBS told NDTV that Dr Rajan has changed the thinking that central bank has a hands off approach to the rupee. He shared a vision for overhauling the financial sector and also announced two specific and unconventional measures to support the rupee, Mr Kapoor added.
Mayruesh Joshi of Angel Broking told NDTV that steps taken by Raghuram Rajan are not only aiding the Indian rupee, but also leading to a huge momentum in the Bank Nifty.
The Bank Nifty traded above the key 10,000 levels rising over 2 per cent today. The BSE Sensex, which has gained over 1,000 points in the previous three sessions, rose another 500 points in early trade today. The broader Nifty neared the 5,850 levels and is now trading above the 200 day moving average, considered to be a bullish signal.
Favourable global factors also helped sentiments on the Street today. Asian stocks rose to a three-month high on Tuesday as investors turned their attention to more data out of China, while oil nursed heavy losses as fears of an imminent U.S. military strike against Syria receded even further.
A recent run of upbeat factory activity data from China, Europe and the United States further underlined that the global economy was on a firmer footing.
Source: NDTV Profit
(With inputs from Reuters)
The trigger for sharp gains in Indian stocks was an over 1.5 per cent gain in the Indian rupee. The partially convertible rupee hit a high of 64.17 and is on track for its fourth straight day of gains after snapping a three-week losing streak.
As of 10.20 a.m., the rupee traded at 64.21 as against Friday's close at 65.24 per dollar. The rupee tracked higher euro, which gained against the dollar after disappointing US jobs data raised hopes that the Fed Reserve may be hesitant to announce tapering of stimulus as early as next week.
A surge in exports also helped sentiments. India's merchandise exports posted double-digit growth in the month of August, while imports were "contained", trade secretary S. R. Rao said on Monday, offering some respite for the troubled rupee. Official data is due later this week.
Sentiment in the currency has improved since Reserve Bank of India governor Raghuram Rajan unveiled a slew of proposals to support the rupee and open up markets on Wednesday, providing a breath of fresh air for investors unnerved by the country's worst economic crisis in two decades.
Gaurav Kapoor of RBS told NDTV that Dr Rajan has changed the thinking that central bank has a hands off approach to the rupee. He shared a vision for overhauling the financial sector and also announced two specific and unconventional measures to support the rupee, Mr Kapoor added.
Mayruesh Joshi of Angel Broking told NDTV that steps taken by Raghuram Rajan are not only aiding the Indian rupee, but also leading to a huge momentum in the Bank Nifty.
The Bank Nifty traded above the key 10,000 levels rising over 2 per cent today. The BSE Sensex, which has gained over 1,000 points in the previous three sessions, rose another 500 points in early trade today. The broader Nifty neared the 5,850 levels and is now trading above the 200 day moving average, considered to be a bullish signal.
Favourable global factors also helped sentiments on the Street today. Asian stocks rose to a three-month high on Tuesday as investors turned their attention to more data out of China, while oil nursed heavy losses as fears of an imminent U.S. military strike against Syria receded even further.
A recent run of upbeat factory activity data from China, Europe and the United States further underlined that the global economy was on a firmer footing.
Source: NDTV Profit
(With inputs from Reuters)
No comments:
Post a Comment