Sensex India: After opening lower tracking global cues, the Sensex and Nifty recovered in the morning trade. The Sensex India is up 152 points to 36,852.54 while the Nifty is trading above the 10,900-mark. Yes, Bank, Tata Motors, IndusInd Bank are among the biggest gainers, jumping up to 3%. Powergrid, Infosys, TCS were among the biggest losers in the Sensex pack, shedding more than 2% each.
Global stocks extended their already substantial losses and the offshore yuan hit an all-time low on Tuesday after Washington designated Beijing a currency manipulator in a rapid escalation of the U.S.-China trade war. U.S. Treasury Secretary Steven Mnuchin said on Monday the government had determined that China is manipulating its currency and that Washington would engage the International Monetary Fund to eliminate unfair competition from Beijing
Domestic equity benchmark BSE Sensex India rebounded over 200 points and the NSE Nifty reclaimed the 10,900 level in early trade on August 6 led by gains in banking and auto stocks.
The 30-share index was trading 214.96 points, or 0.59%, higher at 36,914.80 at 0930 hours. Similarly, the broader NSE Nifty was quoting 68.65 points, or 0.63%, up at 10,931.25.
In the previous session on August 5, both benchmark indices saw intense volatility throughout the session due to multiple headwinds like an escalation in U.S.-China trade war, weak corporate earnings, rupee downfall and political tensions in Jammu and Kashmir.
The 30-share index had ended 418.38 points or 1.13%, and the Nifty plunged by 134.75 points or 1.23% to close at 10,862.60 points.
In early trade on August 6, top gainers in the Sensex pack included IndusInd Bank, Hero MotoCorp, Tata Motors, Yes Bank, L&T, Bajaj Finance, Maruti, ICICI Bank, SBI and Axis Bank, rising up to 2%. On the other hand, TCS, HUL, Kotak Bank, Infosys, Bharti Airtel, HDFC Bank, and RIL fell up to 1.07%.
According to traders, despite weak domestic and global cues, value-buying in banking and auto stocks lifted key indices.
Elsewhere in Asian, Shanghai Composite Index, Hang Seng, Nikkei, and Kospi were trading significantly lower in their respective early sessions. Bourses on Wall Street too ended in the red on August 5.
Meanwhile, on a net basis, foreign institutional investors sold equities worth ₹2,016.73 crore, while domestic institutional investors bought shares to the tune of ₹1,871.27 crore, provisional data available with stock exchanges showed on Monday.
On the currency front, the Indian rupee appreciated 22 paise to 70.50 against the U.S. Dollar. The global oil benchmark Brent crude futures rose 0.99% to 60.40 per barrel.