Euro markets boost Indian recovery

Led by a strong opening in the European markets, the Sensex and Nifty staged a comeback on Tuesday after the mega slump on Monday following the crash in global markets, including the US and China.

While the Sensex rose 290.82 points (1.13 per cent) to end at 26,032.38, Nifty rose 71.70 points (0.92 per cent) to close at 7,880.70.

“In a volatile day of trading sessions, markets managed to regain some of the lost ground after Monday's heavy sell-off. Strong opening of the European markets also helped the Indian equities in maintaining gains,” said Sanjeev Zarbade, Kotak Securities vice-president- PCG Research.

“In our view, the sell-off that we witnessed on Monday is unlikely to be the start of a bear market. Hence, from an investor's perspective, the market sell-off should be viewed as a good opportunity to buy quality stocks. The decline in crude oil prices is a major positive for India as it keeps inflation down and also generates fiscal savings for the government,” Zarbade added.

Meanwhile, Prime Minister Narendra Modi asked all infrastructure-related ministries to come up with time-bound results commensurate to funds provided to them. The warning came at a review meeting of infrastructure sector that is critical to enhance investment climate in the country.

“Enough funds are now being provided for infrastructure creation, the onus is on the concerned ministries to ensure that these outlays are converted into proportionate outcomes,” said the prime minister.