Investors breathe easy as crude prices fall, global cues turn positive

KOCHI: Falling crude oil prices and positive developments in global markets brought relief to investors in the stock and gold markets. With investors turning active ahead of the Reserve Bank of India’s monetary policy decision, the Sensex and Nifty gained nearly 1% on Tuesday.

The Sensex rose 685.41 points to close at 73,067.81, while the Nifty gained 220.35 points to end at 22,776.30. The Reserve Bank is expected to raise its key interest rate by 25 basis points to 5.5% in view of inflationary pressures.

Crude oil prices falling below $100 a barrel increased buying interest in the market. Trent, Kotak Mahindra Bank, Reliance Industries and Bharti Airtel led the gains. Public sector bank stocks, however, came under selling pressure.

Gold rebounds

Gold prices recovered amid hopes that tensions in West Asia would ease. The international price of gold rose by $30 an ounce to around $4,170. Following the global trend, the price of a sovereign of gold in Kerala rose by Rs 880 to Rs 1,10,160 on Tuesday evening. The price had fallen by Rs 120 in the morning.

Rupee continues to slide

The rupee continued to weaken despite the strong performance of the stock market. The rupee ended trading at 96.43 against the US dollar on Tuesday, down eight paise.