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NEW DELHI: A host of positive triggers did the job for the domestic stock market today as key indices made a strong comeback in a session that was otherwise marked by high volatility.
Oil resumed its downward trajectory and the rupee looked better, which gave investors some hope.
The market was subdued earlier on because of lacklustre global shares.
A set of favourable macroeconomic data too helped.
The BSE Sensex settled the day at 35,144, up 332 points or 0.95 per cent.
The benchmark moved back and forth between profits and losses during the day and saw a swing of 515 points.
Only four members of the Sensex pack ended lower, with Sun Pharma as the top loser.
The pharma major came down 4.72 per cent ahead of its quarterly results.
NSE Nifty settled shy of the 10,600-mark at 10,583, up 100 points, or 0.96 per cent.
On the 50-share index, 41 stocks closed with gains.
On the NSE, pharma, PSU bank, media and realty stocks retreated.
The Nifty Private Bank index emerged as the top gainer (up 1.16 per cent), followed by financials, auto and FMCG indices.
Midcaps and smallcaps played catch-up as both the indices rose up to 0.31 per cent.
What gave the market the lift
1.
Crude oil falls moreOil prices extended their losses after Monday's gain as US President Donald Trump put pressure on OPEC not to cut supply to prop up the market.
Brent crude slipped below $70 per barrel and US crude was under $60.
"Hopefully, Saudi Arabia and OPEC will not be cutting oil production.
Oil prices should be much lower based on supply!" Trump had said in a Twitter post on Monday.
Trump's tweets come in response to Saudi plans to cut oil output to prevent oversupply.
The fall of nearly 1 per cent in crude prices soothed investor's nerves.
2.
Rupee regains strengthThe domestic currency gained 38 paise against the dollar on Tuesday amid selling of the American currency by banks and exporters.
The domestic unit hit an intraday high of 72.51 against the greenback.
3.
Upbeat macroeconomic dataThe consumer price index (CPI)-based inflation fell to a one-year low of 3.31 per cent in October 2018, from 3.7 per cent in September 2018 and 3.58 per cent in October 2017.
The retail inflation print is the lowest since September 2017 when it had touched 3.28 per cent.
"Given the strong focus of the MPC on the headline inflation print, which should remain benign for the rest of H2 FY19 (we expect it in the range of 2.8-4.3 per cent), we see limited scope for rate hikes in the rest of FY2019," Kotak Economics Research said in a note.
The better-than-expected macro numbers along with a possibility of no more rate hikes in rest of FY19 buoyed sentiment on Street.
4.
Rebound in global marketsMarkets in Asia recouped some losses after a report that China's top trade negotiator was preparing to visit the United States before a meeting between the leaders of the world's two largest economies, Reuters reported.
The Shanghai composite index rose 0.9 per cent, but Japan's Nikkei lost more than 2 per cent.
European shares too recovered with pan-European STOXX 600 gaining 0.5 per cent.
Expert-talk:Vinod Nair, Head of Research, Geojit Financial Services
"Despite volatility in global markets, the Nifty gained nearly 1 per cent supported by sharp fall in oil prices.
Softening of CPI inflation to 3.31 per cent, India's stable industrial production and gains in the rupee added to the positives.
Decline in oil prices below $70/barrel is likely to invoke positive sentiment for domestic market in the near term."
