The rupee gained by 56 paise at 73.56 on dollar sales, capital inflows and the sharp fall in crude oil prices. Brent crude, which registered a four-year high of $86.74 a barrel last week, has now corrected sharply to a level just above $80.
After the severe hammering on Thursday, equity benchmarks on Friday reversed almost all of those losses sending the Sensex vaulting by 732 points higher and the Nifty Index above the 10,450 mark. The rupee also staged a smart comeback and closed higher at 73.56 against the dollar.
Aided by gains in shares of auto, energy and metal stocks, the Sensex rose by 2.15 per cent at 34,733.58, while the Nifty closed higher by 237.80 points or 2.32 per cent at 10472.50. On Friday, the Sensex had plunged by 760 points in the wake of a global sell-off in stocks.
According to analysts, the smart rally in stocks and the subdued crude oil prices boosted the forex market sentiment. The rupee gained by 56 paise at 73.56 on dollar sales, capital inflows and the sharp fall in crude oil prices. Brent crude, which registered a four-year high of $86.74 a barrel last week, has now corrected sharply to a level just above $80.
According to Jani, short-term volatility may persist in the market, but the long-term prospects for Indian markets continue to look great. Indian markets took a beating in the past one month on various negative new flows ranging from FPI selling, IL&FS crisis, falling rupee, rising oil prices and US China trade tensions, leading to nervousness among investors.
US stocks surged Friday, joining a global rally in equities after two days of market tumult as trade tensions between the US and China seemed to ease, at least temporarily, with the countries planning to meet in November and the Treasury Department saying that China isn’t manipulating its currency. Treasuries slipped, the dollar was steady and crude climbed above $71 a barrel.
All major US benchmarks were up at least 1.5 per cent. The S&P 500 which is looking to snap a six-day losing streak totaling 6.8 per cent, climbed the most since April. Tech drove the strength as the Nasdaq 100 Index jumped more than 2 per cent. Strong trade data from China also buoyed markets, with the MSCI Asia Pacific Index rising from the lowest level since May 2017.