After a bloodbath on Monday, the Indian markets recovered to close in the green following global cues. Sensex closed 290 points up to finally end at 26,036. Nifty closed 71 points up to end at 7880. Speculation that the Goods and Services Tax will finally become a reality in a special session of the Parliament also raised investor mood in the domestic market.
During the day, Sensex dived in deep red to register a fall of 450 points but recovered after European markets registered gains.
Rupee which has been weakening for weeks now, showed some strength against the dollar. Rupee strengthened to trade below the 66/dollar mark during Tuesday’s trade.
On Monday, Sensex crashed by 1,625 points, the biggest intra-day fall since 2009, and the third biggest fall ever. Investors were estimated to have lost a whopping over 7 lakh crore rupees. Fear of a slowdown in China – the second largest economy in the world – gripped global markets and led to a global meltdown. World over, markets were in deep red, especially the Asian indices.
On Friday, Chinese stocks saw “another nightmarish day”. Shanghai crashed for the second straight day. Indices nearly fell by over 7 per cent against Monday’s crash of over 8 per cent. China cut interest rates by 0.25 per cent after the markets recorded a massive fall for the second day straight. The Shanghai index has now crashed 42% from its June 12 peak.
Other Asian markets closed in the green except Japan’s Nikkei which fell by about 4 per cent. Major European indices gained nearly 2 per cent in early trade after Monday’s fall of over 5 per cent. The Wall Street too opened in the green after falling by over 1000 points during Monday’s manic selloff.