Stock markets, closed higher today after four consecutive days of fall, as the rupee touched a three-week high amid falling crude oil prices.
The Sensex rose 186 points to regain the 34,000 mark, which it had lost for the first time in past six months the previous day. NSE benchmark index Nifty settled 77 points higher at 10,224.
Gains in financial services and metal stocks pushed the markets higher, however some losses in pharma stocks limited the upside. Top gainers on the 50-scrip Nifty index were Bajaj Finance, Bharti Airtel, Hindustan Petroleum, Indian Oil and Hindalco Industries, closing between 5 per cent and 12 per cent higher.
The rupee hit a three-week high of 73.10 against the dollar during the session, helped by a sharp fall in global crude oil prices overnight.
However, analysts expect the gains to be short-lived.
“If markets have fallen for four days, people would obviously take the opportunity to take some positions, hoping things will be different, but this is not sustainable,” cited Sudhakar Pattabiraman, head of research operations, William O’Neil India, as saying. “Overall, we still don’t see a great reason for people to buy stocks or take positions at this point.”
Sentiment in domestic markets has been sour in recent weeks after a string of defaults at major non-banking financial company IL&FS sparked concerns of a liquidity crunch.
Wipro shares finished 0.7 per cent lower, ahead of release of quarterly results by the company.>