Stock indices rebounded from three-week lows as Asian markets rallied amid eased concerns about a slowdown in global growth. The rupee also rallied by 50 paise to a four-week high of 62.67 against the US currency on dollar selling by banks and hopes of capital inflows in the wake of the turnaround in the equity markets.
The 30-share Sensex, which plunged to three-week low in Wednesday’s trade, staged a strong comeback to reclaim the 27,000-level and settled 365.89 points, or 1.36 per cent, higher at 27,274.71.
However, the index had lost nearly 980 points, or 3.51 per cent in the previous three sessions including the worst single-day crash in over five years on Tuesday when it plunged by 855 points.
The 50-share Nifty of the NSE also closed above the key 8,200-level by surging 132.50 points, or 1.64 per cent, to 8,234.60 on Thursday.
The rupee has gained 90 paise in the last two days. On Wednesday, it had appreciated by 40 paise. It resumed slightly lower at 63.20 and recovered to 62.58 on fresh selling of dollars by banks and exporters before ending at 62.67 to the dollar — a net gain of 50 paise or 0.79 per cent. “US FOMC minutes suggested that Fed may be comfortable normalising rates at current inflation levels. The view that economic growth will pick up helped major indices to rally,”Kiran Kumar Kavikondala, CEO, WealthRays Securities.