Sensex up 118 pts in early trade on bargain hunting

MUMBAI: The benchmark BSE Sensex recovered over 118 points to regain the 25,000-mark in early trade on Tuesday largely on the back of value-buying in select blue-chip stocks amid mixed Asian cues. 

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The 30-share barometer recaptured the 25,000-level by rising 118.37 points or 0.47 per cent to 25,012.18 with realty, banking, metal, PSU and power sector stocks leading the recovery. 

The gauge had lost 870.97 points in the previous two sessions. Also, the NSE Nifty recovered by 38.35 points or 0.50 per cent to 7,597.15. 

Brokers said emergence of buying by participants at prevailing levels and sustained buying by domestic financial institutions, supported the market. 

Besides, a mixed trend in cautious trading at other Asian bourses ahead of Chinese trade data influenced sentiments, they said. 

Among other Asian markets, Shanghai composite Index was down 1.12 per cent, Hong Kong's Hang Seng was trading up by 0.11 per cent, while Japan's Nikkei fell by 0.76 per cent in early trade.

Source - TOI 

Rupee regains 63 levels as sensex gains 388 points

The rupee regained 63 levels firming against the dollar to trade at 63.95 in late morning deals in the foreign exchange market on Friday. The domestic currency gained on the back of a sharp recovery in equity markets with the 30 share BSE Sensex rebounding 390 points to 26,988 intraday. The 50-share Nifty which had fallen below 8,000 levels too recovered.

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Forex dealers said that the rupee gain was entirely on the back of the gains in the equity markets. There was an anticipation that foreign investors are likely to return with the government providing some assurances on addressing their concerns over Minimum Alternate Tax.

There was optimism on crude oil prices as well as analysts said that crude prices would continue to remain subdued despite signs of firming up in 2015.

"The genesis of oil prices moving down last year was in the fact that OPEC decided to stop targeting a price just at a time when unconventional sources of oil started to come in. This maintained equilibrium in prices when there were disruptions in the Middle East due to political problems. However, with normalcy returning the supplies were restored and production flows increased substantially which led to the rapid decline in the prices," said Madan Sabnavis,chief economist, Care in a report on commodity prices.

The report said that there are hence oversupplies in the market despite an increase in demand,with large inventories, especially in the USA. "According to the World Bank, the U.S. rig count fell by half in the past five months, but oil production continues to climb by more than 1 mb/d year-on-year. OPEC production too has increased during the quarter with Saudi Arabia averaging 10 mb/d in March. The main risks remain in the areas of cutback in production by the OPEC countries and earlier than expected closure of high cost operations especially in the USA," the report added.

Source - Times Of India