Heavyweights such as Tata Motors, Tata Steel, ICICI Bank, SBI and RIL aided the recovery on the bourses.
(Updated at 2.30pm)
have staged a smart recovery this afternoon, with the Sensex rebounding around 700 points from the lows of the day, due to a recovery across European markets.
At 2:15 PM, the Sensex has rebounded nearly 700 points from the day's low of 25,298 and is now at 25,965, up 225 points or 0.8% and the Nifty is at 7,874, up 65 points. Heavyweights such as Tata Motors, Tata Steel, ICICI Bank, SBI and RIL are aiding the recovery on the bourses.
In the broader markets, the BSE Mid-cap is up 1.7% at 10536 and the small-cap index had edged higher by 0.5% at 10648. The market breadth is, however, weak; Out of 2,678 stocks traded on the BSE, there are 974 advancing stocks as against 1614 declines.
Meanwhile, there is a glimmer of hope on the Goods and Services Tax Bill front as reports suggest that the government is consulting the opposition parties to discuss extra sittings of Parliament to pass the much-delayed reform measure.
In other positive news, the Indian Volatility index or VIX, which had spiked to touch an intra-day and 52-week high of 35.57 in intra-day trades, has surrendered all its gains and is now down 1% at 27.83. The decline could signal the return of stability, atleast for the time-being. However, the markets are likely to remain volatile in the near future as they track the market cues emanating from China and ahead of the impending F&O expiry on Thursday.
The rupee has recovered from its day's low and is now up 12 paise to 66.51 against the dollar. It had touched an intraday low of 66.76. The Reserve Bank of India Governor Raghuram Rajan said on Monday that the central bank will not hesitate to use its reserves to curb the volatility in the rupee.
The European indices, including the FTSE, CAC and DAX have climbed by 2-3% in early trades, giving a succor to the battered indices back home. The Asian markets also saw a semblance of stabilty, with the Hang Seng, Jakarta, Kospi, SET and Taiwan indices gaining 1-3% each. However, the Shangai index tumbled by another 8% as investors shunned riskier assets on concerns over sluggish economic growth. And the Nikkei crumbled by 4%.
Heavyweights such as Tata Motors, Tata Steel, ICICI Bank, SBI and RIL are aiding the recovery this afternoon.
On the sectoral front, all the indices have rebounded into the green, with the oil, metal and banking indices surging between 2% and 3% each.
In the oil space, the heavyweights RIL and ONGC have gained 2.2% and 1.2% respectively, while oil marketing companies such as BPCL, HPCL, IOC and OIL have gained around 2% each due to lower crude oil prices.
The metal stocks are also seeing value buying after the battering received in the previous session. Vedanta, Tata Steel, Hindalco and Jindal Steel have gained 3-5% each.
Banking shares are also witnessing short-covering, with ICICI Bank, SBI, Axis Bank and Yes Bank gaining 2-4% each.
HDFC, Maruti Suzuki and Bhel are however, trading lower by around 1% each.