Thursday 27 August 2015

Sensex Soars 450 Points, Nifty Regains 7,900: 10 Developments

BSE Sensex and Nifty were sharply higher in early trade on Thursday, tracking gains in global markets. Asian markets were sharply higher following a rebound on Wall Street overnight. Dalal Street however is likely to remain choppy as derivatives for the August series expire today.

Here are the top 10 developments:

1) The Sensex rose as much as 455 points at its day's high while Nifty hit 7,930.80. The rupee rose to 65.88 /dollar today in early trade as compared to yesterday's close of 66.14.

2) Asian stocks were higher after a sharp rebound on Wall Street helped soothe investors' tattered nerves.

3) Stock markets around the world had tumbled earlier in the week as a slump in Shanghai shares fuelled worries over China's economic health, but some calm returned after Beijing rolled out strong policy easing steps late on Tuesday.

4) China markets were also higher today with benchmark index Shanghai Composite trading 1.6 per cent higher. In the previous six days, China shares slumped over 22 per cent, pulling down markets across the globe.

5) US stocks snapped a six-day losing streak on Wednesday after one of the most senior officials in the Fed said the turmoil that has gripped world financial markets had weakened the case for a rate rise in September. Overnight, the Dow Jones industrial average surged 3.95 per cent higher at 16,285.51. Its gain of 619.07 points was its biggest since 2008.

6) However, worries that a slowdown in China, the world's second-largest economy, could stall world growth still haunted the policymakers even after another rate cut by Beijing.

7) William Dudley, the head of the New York branch of the Fed and one of the most influential members of its monetary policy board, on Wednesday said the reasons for a rate hike in September had faded. "The slowdown in China could lead... to a slower global growth rate and less demand for the US economy," he said.

8) Analysts say that unless selling pressure from foreign institutional investors abates, Indian markets are unlikely to gain a steady footing. Foreign institutional investors hold nearly 25 per cent of BSE 200 stocks.

9) Foreign investors sold Indian shares worth Rs 2345.77 crore on Wednesday. This takes their total selling to nearly Rs 13,500 crore in the previous five sessions.

10) In contrast, domestic investors bought stocks worth Rs 1881.08 crore on Wednesday. They have been big buyers of Indian stocks for the last four days, offering some support to Sensex and Nifty.

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