Sensex gains around 300 points as rupee recovers

Reuters Market Eye - The BSE Sensex is trading up around 300 points and the Nifty has gained over 80 points, tracking a rebound in the rupee from a record low after the Reserve Bank of India's move to provide dollars directly to oil companies.

The BSE Sensex fell 3 percent while the Nifty slumped 3.5 percent over the previous two sessions.

Traders say continued foreign selling and expiry of August equity derivative contracts later in the day may increase volatility in the second half of trade on Thursday.

Foreign institutional investors sold about $1.12 billion worth of shares in the previous nine sessions through Wednesday.

 

State-owned oil companies gain after the central bank's move on Wednesday to provide dollars directly to these companies.

Indian Oil Corp Ltd rises 2.1 percent, Hindustan Petroleum Corp and Bharat Petroleum Corp gain nearly 1 percent.

Financial shares gain after steep losses in the previous two sessions are seen as overdone. Housing Development Finance Corporation Ltd up 6 percent.

The BSE Sensex rises 1.7 percent and the Nifty is up 1.6 percent at 1217 IST.