Sensex ends up 160 points, financial stocks flat
Mumbai: The key equity indices advanced for a second straight session on Tuesday, as a precipitous fall in global crude oil price has boosted the domestic currency, luring foreign investors back.
Buying was witnessed in IT, energy and Teck (Technology, entertainment and media) stocks while the financials closed flat.
The Sensex settled up 159.06 points or 0.45 per cent at 35,513.14, from its previous close of 35,354.08. It touched an intra-day high of 35,555.16 and a low of 35,262.97.
The Nifty50 gained 57.00 points or 0.54 per cent to finish at 10,685.60.
The Nifty PSU Bank Index gained 1.15 per cent after the Centre late Monday announced it would pump Rs 42,000 crore into the debt-laden banks by March.
Currently, 11 of the 21 state-run banks are under the central bank’s Prompt corrective action (PCA) framework, restricting their ability to lend and expand branches.
Crude oil prices traded at $60.24 per barrel, while the rupee rose to 70.74 per US dollar from its previous close of 70.87.
The decline in crude oil price, which has crashed over 30 per cent since its 4-year peak on October 3, comes on bets demand will slow amid a supply glut.
The Brent crude had slipped below $60 a barrel in just a month following the US move to let eight countries, including India and China, continue buying oil for six months from Iran despite its sanctions.
India is the third-largest importer of crude oil. According to India Ratings and Research (Ind-Ra), a change of $1 per barrel in global crude price will impact the country’s import bill by Rs 61.6 billion.