The benchmark BSE Sensex surged by 137 points to 23,691.10 and the NSE Nifty recaptured the 7,200-mark in early trade today amid a firming trend at other Asian markets.
Investors were, however, cautious after India’s exports shrank 13.6 per cent in January - 14th month in a row.
The 30-share index, which had rallied 602.29 points in the previous two sessions, gained 136.98 points or 0.58 per cent at 23,691.10, with all sectoral indices led by oil&gas, metal and banking trading in the positive zone, rising by up to 0.89 per cent.
The NSE Nifty reclaimed the 7,200-level by surging 41.70 points, or 0.58 per cent, at 7,204.65.
Brokers said buying activity picked up largely in tandem with a firming trend in other Asian bourses and another rally in Europe in yesterday’s trade amid rise in crude oil.
Among other Asian markets, Japan’s Nikkei climbed 1.39 per cent while Hong Kong’s Hang Seng was trading higher by 1.62 per cent in early trade. Shanghai’s Composite index was also up 2.83 per cent on speculations that China is preparing stimulus measures to boost economy.
The US markets were closed yesterday for the Presidents’ Day holiday.
The rupee was trading lower by 15 paise at 68.22 against the American currency in early trade today at the Interbank Foreign Exchange market as the dollar firmed up overseas.
Forex dealers said apart from increased demand for the US currency from importers and dollar’s gains against other currencies overseas, India’s exports contracted 13.6 per cent in January, 14th month in a row, put pressure on the rupee.
They said, however, a higher opening in the domestic equity market, capped the rupee’s losses.
The rupee had strengthened further against the American currency by surging 16 paise to end at 68.07 in yesterday’s trade on fresh selling of dollars by banks and exporters on the back of a sharp recovery in the equity market.
Meanwhile, the benchmark BSE Sensex was trading higher by by 136.98 points or 0.58 per cent to 23,691.10 in early trade today.