Mumbai, Sept. 4: The Sensex today soared 333 points as investors picked up shares on improved sentiments following a smart recovery by the rupee.
The domestic unit rose 56 paise to 67.07 against the dollar after the RBI was said to have stepped in to lift the rupee from near record lows.
On the BSE, gains were led by metal, healthcare and auto stocks. Realty shares fell after the RBI said banks should not make upfront disbursals of home loans, which should instead be linked to stages of construction.
The Sensex opened higher and moved in a range of 18188.43 to 18612.60 before settling at 18567.55, a rise of 332.89 points, or 1.83 per cent.
The broader Nifty of the NSE shot up 106.65 points, or 2 per cent, to 5448.10.
The markets were relieved that reports of missile firings yesterday turned out to be tests carried out jointly by Israel and the US. Yesterday, the Sensex fell 3.45 per cent, the lowest in a week after reports of the missile firings indicated escalating tension in Syria.
Hopes of fresh steps from new RBI governor Raghuram Rajan also boosted sentiments.
“The Indian equity market managed to stage a strong pullback, once again tracking the currency markets,” said Amar Ambani, head of research at India Infoline. “With a new RBI governor, one does hope for a rate cut or, at least, one expects no further hikes as feared in the wake of the recent RBI measures to save the rupee.”
The rupee today started at 68.10 to the dollar and fell to a low of 68.62 because of dollar demand from importers. The RBI is said to have intervened at this stage through PSU banks, leading the rupee to bounce back to a high of 66.80 before ending at 67.07.