The benchmark Sensex on Tuesday logged its first rise in three days, gaining about 299 points to end at 28,736.38 as a batch of tepid US economic indicators triggered hopes that Fed will not raise interest rates soon. In a highly volatile session, initial sharp gains were almost washed out in late mid-session trade but the stock markets regained form on a sudden gust of fag-end buying.
Buying was seen mainly in pharma, capital goods, FMCG, consumer durables, refinery, metal and banking shares. Some of the IT and tech counters attracted profit-booking. Ten out of twelve BSE sectoral indices closed up. Barring Hong Kong and Singapore which closed with nominal losses, other Asian markets closed higher tas investors bet on the possibility that weaker-than-expected US data will prompt the Federal Reserve to adopt a cautious stance. If US raises rates, there is fear that emerging markets including India will see sharp capital outflows.
The dollar pulled back from a 12-year high against Euro ahead of Fed's two-day policy meeting starting later. Meanwhile The rupee extended gains for the second consecutive session, rising 11 paise against the American currency to 62.70 amid a good show by stocks and on selling of dollars .