Brent crude cools to $109 a barrel; Sensex gains 263 points
Stock markets bounced back on Tuesday, tracking the recovery elsewhere in Asia, following the sell-off a day earlier as traders covered their short positions after the Russian president ordered troops that took part in military exercises this week to return to base. The move sparked hopes of a resolution to the geopolitical tensions over Ukraine. Sentiment in Indian markets also got a boost after data showed foreign investors were buyers on Monday, when the the stand-off between Russia and Ukraine had escalated.
The BSE Sensex ended the day up 263 points or 1.3 per cent at 21, 209. The NSE Nifty was up 77 points or 1.2 per cent at 6,279. Brent crude prices slipped 1.5 per cent to $109 a barrel.
Traders had built short positions on Monday on expectations that tensions between Russia, the world's largest oil producer, and Ukraine would heighten. On Tuesday, Russia’s president Vladimir Putin ordered troops in military exercises in central and western Russia to return to base, assuaging nervous investors.
The rupee on Tuesday ended at 61.86 to the dollar, up 0.29 per cent from its previous close.
Investors bought into underperforming stocks, particularly those of state-owned banks and energy companies. “There was buying in the banking sector, which closed above its 200-day moving average. Oil & gas sector companies also recovered in the hope that crude oil prices would settle down as the tension subsided,” said Rikesh Parikh, vice-president (equities), Motilal Oswal Securities.
Indices of banking, capital goods and consumer durables sectors gained a little over two per cent on Tuesday on continued investor buying. Foreign institutional investors were net buyers of equities at Rs 185 crore, according to provisional data for Tuesday. Domestic institutions, on the other hand, were net sellers at Rs 344 crore.
The market mood would remain buoyant in the run-up to the elections, said Ambareesh Baliga, managing partner, Edelweiss Global Wealth.
Market watchers said that the mood in the market would continue to remain buoyant in the run-up to the elections. "The sentiment is clearly positive as of now as we get closer to the elections.
Hopes are building up for a stable government and markets are accordingly getting ready for that," said Baliga.
Stock markets bounced back on Tuesday, tracking the recovery elsewhere in Asia, following the sell-off a day earlier as traders covered their short positions after the Russian president ordered troops that took part in military exercises this week to return to base. The move sparked hopes of a resolution to the geopolitical tensions over Ukraine. Sentiment in Indian markets also got a boost after data showed foreign investors were buyers on Monday, when the the stand-off between Russia and Ukraine had escalated.
The BSE Sensex ended the day up 263 points or 1.3 per cent at 21, 209. The NSE Nifty was up 77 points or 1.2 per cent at 6,279. Brent crude prices slipped 1.5 per cent to $109 a barrel.
Traders had built short positions on Monday on expectations that tensions between Russia, the world's largest oil producer, and Ukraine would heighten. On Tuesday, Russia’s president Vladimir Putin ordered troops in military exercises in central and western Russia to return to base, assuaging nervous investors.
The rupee on Tuesday ended at 61.86 to the dollar, up 0.29 per cent from its previous close.
Investors bought into underperforming stocks, particularly those of state-owned banks and energy companies. “There was buying in the banking sector, which closed above its 200-day moving average. Oil & gas sector companies also recovered in the hope that crude oil prices would settle down as the tension subsided,” said Rikesh Parikh, vice-president (equities), Motilal Oswal Securities.
Indices of banking, capital goods and consumer durables sectors gained a little over two per cent on Tuesday on continued investor buying. Foreign institutional investors were net buyers of equities at Rs 185 crore, according to provisional data for Tuesday. Domestic institutions, on the other hand, were net sellers at Rs 344 crore.
The market mood would remain buoyant in the run-up to the elections, said Ambareesh Baliga, managing partner, Edelweiss Global Wealth.
Market watchers said that the mood in the market would continue to remain buoyant in the run-up to the elections. "The sentiment is clearly positive as of now as we get closer to the elections.
Hopes are building up for a stable government and markets are accordingly getting ready for that," said Baliga.
