Equity markets bounced back after a sharp fall on Tuesday. This was largely due to rupee recovery against dollar. Rupee traded at 67 against dollar against yesterday’s close of 67.65. It touched the 68-level against dollar today.
The fear of US war against Syria also subsided after the clarification that the two missiles that landed in the Mediterranean region yesterday were not part of a US led military strike in Syria.
Telecom and auto stocks were the major gainers for the day. Sensex gained 333 points to close at 18,568, while Nifty was up 107 points or two per cent at 5,448.
Jayant Manglik, President- Retail Distribution, Religare Securities said the rebound was aided by the substantial recovery in rupee against dollar.
“We have been witnessing that equity markets are mirroring the rupee movement and their negative correlation has strengthened in the recent past. Hence, the augmented volatility on currency front influencing the equity markets in the same manner,” he said.
Among major gainers on BSE were Ranbaxy Lab (8.75%), IPCA Lab (8.24%), ING Vysya Bank (7.07%), REC (6.56%), Jaiprakash Associate (6.28%).
Top losers for the day on BSE were Sobha Developers (-6.24%), Pipavav Defence (-4.97%), Max India (-2.45%), Mphasis (-2.42%) and Castrol India (-2.31%).
Except for realty, most sectoral indexes were in the green.