NEW DELHI: Market fought off weak global cues for the whole of Tuesday as it ended in the green for the sixth straight session.
But the gains were capped as global growth concerns weighed and participants took profit.
Sentiment got a lift from strength in the rupee and a sharp decline in global oil prices. The possibility of the US Federal Reserve hiking rates less aggressively nudged investors to buy more.
The US Fed meeting, which kicks off today and will conclude on Wednesday, is being keenly tracked for the course of future rate hikes.
The 30-share index saw a swing of over 300 points during the day.
Sun Pharma, with gains of 2.98 per cent, topped the leaderboard. It was followed by Power Grid, M&M, Vedanta, Asian Paints and L&T. Infosys, on the other hand, was the big decliner, down by over 2 per cent.
On the sectoral front, barring technology, IT, FMCG and consumer durables, all other indices ended positive. BSE Power and Capital Goods were lead sectoral gainers, rallying over 1 per cent each.
BSE Midcap and Smallcap indices settled up 0.21 per cent and 0.45 per cent, respectively.
Let's check out the factors that moved market today.
Rupee at near 3-week high
The rupee touched a near three-week high against the dollar on lower crude prices and expectations of fewer US rate hikes in 2019 as markets looked forward to the outcome of a crucial Federal Reserve meeting. The rupee was at 70.89 against the dollar, after hitting 70.84, its highest since December 7. The 10-year government bond yield fell below 7.4 per cent as crude oil declined.
Oil drops on oversupply concerns
Oil prices fell 4 per cent on Tuesday, dropping for the third consecutive session on reports of swelling inventories and forecasts of record US and Russian output combined with a sharp sell-off in global stock markets. US crude oil fell $2.04, or 4.1 per cent, to a low of $47.84, its weakest since September 2017, Reuters reported.
Possibility of fewer Fed rate hikes
The US Fed meet starts today, with the FOMC decision due on Wednesday. Although it is widely expected that the Fed will raise rates this month, analysts are calling for two more hikes in 2019 compared with three in September on worries over a potential recession there, according to a Reuters poll.
Vinod Nair, Head of Research, Geojit Financial Services
Market reversed from the days low despite weak global market as oil prices slid further and a drop in bond yield raised investors confidence. Global market traded on a negative note due to concerns of slowdown in the world economic growth. Strong rupee and fall in yield are easing the liquidity concerns of the market.