Overseas, most Asian shares declined on Tuesday as China allowed its currency to slip past a psychological bulwark amid sharp losses in domestic share markets, a shift that pressured other emerging currencies to depreciate to stay competitive. South Korea's markets are closed for a public holiday.
The International Monetary Fund (IMF) added to the malaise by cutting forecasts of global growth for both this year and next, including downgrades to the outlook for the United States, China and Europe.
IMF has retained its India growth forecast for the current year and marginally pared it for next fiscal, citing the drag from higher crude prices and tightening of the global financial situation. But it will remain the fastest-growing major economy, well ahead of China, it said.
In its latest World Economic Outlook, the IMF said India will grow 7.3% in FY19 and 7.4% in FY20. It had in January forecast FY20 growth at 7.5%. China is forecast to grow 6.6% and 6.2% in 2018 and 2019, respectively. The Indian economy grew 6.7% in FY18.
In US, the Dow Jones Industrial Average bounced back from earlier losses to finish higher Monday, but the broader stock market closed lower as fears over rapidly rising rates continued to weigh on sentiment. The market was influenced by worries that US economic growth may be jeopardized by higher interest rates.
Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 1805.07 crore on 8 September 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1973.97 crore on 8 September 2018, as per provisional data.
After reporting steep losses last week, key equity benchmark ended higher yesterday, 8 September 2018, led by bargain hunting in banks and oil sector stocks. Trading was highly volatile as indices swung between gains and losses in intraday trade. The Sensex bounced back after briefly slipping below the 34,000 mark. The Sensex rose 97.39 points or 0.28% to settle at 34,474.38. The Nifty 50 index rose 31.60 points or 0.31% to settle at 10,348.05.
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