The rupee appreciated on Wednesday after the Reserve Bank of India stepped in to control bets against the local currency. The dip in the dollar index due to US economy slowdown worries kept the American currency closer to its five-month low. Asia Pacific stock market, including India, bounced back.
The BSE Sensex climbed 564 points (up 0.77 per cent) while the NSE Nifty rose more than 176 points (up 0.8 per cent) in morning trade, as global markets collectively turned positive on the latest news of relief from Donald Trump-induced tariffs. Tokyo, Shanghai, Hong Kong, and Seoul traded higher on Wednesday morning.
The American markets followed the US dollar, with the benchmark S&P 500 suffering its worst day of the year on Tuesday. This, along with easing crude oil prices, helped the rupee gain 9 paise to 87.10 against the dollar in early trade on Wednesday. On Tuesday, the Indian currency gained significant ground (13 paise) after rebounding from initial losses to settle at 87.19.
The recovery in Indian markets aligned with analyst views that domestic equities were oversold, and therefore, due for recovery.
Tata Steel, Mahindra & Mahindra, HCL Tech, Tech Mahindra, Adani Ports, Tata Motors, Power Grid, NTPC, Infosys, TCS, and Bharti Airtel gained, while Bajaj Finance, Bajaj Finserv, UltraTech Cement, and HDFC Bank lagged in morning trade in the 30-stock Sensex.
The Nifty 50, which ended 36 points lower on Tuesday marking 10 straight sessions of losses, bounced back on Wednesday.
