Sensex bounces back 185 points, sparkles in opening trade

The Sensex regained strength on Tuesday morning by nearly 185 points and rose to 37,829.93, bolstered by positive inflation numbers coupled with heavy buying by domestic institutional investors, though Asian bourses showed mixed trend.

According to brokers and traders, stronger rupee amd more earnings by some blue-chip firms such as Tata Steel also added to positive sentiments.

The 30-share barometer jumped 184.93 points, or 0.49 per cent, to 37,829.83. Sectoral indices led by metal, realty, banking, FMCG, PSU and consumer durables rose by up to 1.13 per cent. The gauge had lost 379.47 points in the previous two sessions.

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Similarly, the NSE index Nifty recovered by 36.25 points, or 0.31 per cent, to 11,392.

Top Gainers: Tata Steel surged 1.51 per cent. The company on Monday said its consolidated net profit jumped more than two-folds to Rs 1,933.80 crore in the April-June quarter of 2018-19 compared to Rs 921.09 crore during the same period a year ago.

Other gainers were Axis Bank, ITC, ICICI Bank, HDFC, SBI, Yes Bank, Asian Paints, HUL, Bajaj Auto, Kotak Bank, HDFC Bank, Tata Motors and RIL, gaining up to 2.01 per cent.

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Buying activity paced up on positive economic data after retail inflation fell to a 9-month low of 4.17 per cent in July on declining vegetable prices which may prompt the Reserve Bank to pause interest rate hike in its next monetary policy review.

In the last two reviews, the RBI has raised the key repo rate by 0.25 per cent each on inflationary concerns. The next bi-monthly policy is to be unveiled on October 5.

Domestic institutional investors (DIIs) bought shares worth a net Rs 216.29 crore while foreign portfolio investors (FPIs) sold shares worth a net Rs 971.86 crore yesterday, provisional data showed.

Asian shares were mixed as tremors from the collapse of the Turkish lira ebbed a little. Ahead, a barrage of economic data out of China is expected later in the day.

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Japan’s Nikkei rose 1.26 per cent, while Hong Kong’s Hang Seng shed 0.94 per cent and China’s Shanghai Composite fell 0.50 per cent in their early deals.

The Dow Jones Industrial Average was down for a fourth straight session as the ongoing turmoil in Turkey dampened investors’ appetite for riskier assets. The US Dow Jones Industrial Average had closed 0.50 per cent lower on yesterday’s trade.

(With PTI inputs)