Indian markets rebounded today, with Sensex surging 400 points and Nifty back above 10.250. Shares of oil marketing companies Indian Oil, BPCL and Indian Oil rallied around 3% after a sharp drop in global crude prices. Among other top gainers, Bajaj Finance rallied over 7% after the company posted a 54% jump in its September quarter net profit to Rs 923 crore.. The breadth of the market was strong, with broader markets also seeing strong gains. The BSE midcap and smallcap indices were up over 1%.

Aviation stocks also attracted strong buying after a drop in global oil prices. Among Aviation stocks, Jet Airways India Ltd rose 3.3%, SpiceJet Ltd 4% and InterGlobe Aviation Ltd 3%.

The yield on 10-year government bond today fell to a nearly two-month low after traders cheered Reserve Bank of India’s announcement of open market operations and continued drop in international crude oil prices. At 9.15 am, the yield on 10-year gilts stood at 7.851% – a level last seen on 21 August – from its previous close of 7.889%. Bond yields and prices move in opposite directions. Meanwhile, the rupee also moved higher and was trading at 73.18 a dollar, up 0.53% from its Tuesday’s close of 73.57. The currency opened at 73.16 a dollar.

In commodities, US crude futures traded at $66.41 per barrel after dropping roughly 4 percent on Tuesday to a two-month low of $65.74. Brent crude futures traded at $76.53 per barrel after dropping more than 4 percent on Tuesday to $75.88, their lowest since September 7. Crude slid after Saudi Arabia said it could supply more crude quickly if needed, easing concerns ahead of U.S. sanctions on Iran.

Asian stocks traded mixed today as Chinese shares reversed losses, helping offset concerns about the corporate earnings outlook in an environment of tightening financial conditions. Global stocks have suffered this week on worries about U.S. earnings, Italian government finances, U.S. trade tensions and mounting pressure on Saudi Arabia over the death of dissident journalist Jamal Khashoggi.

Equity losses in the region were modest, however, after a late round of buying helped Wall Street indexes pare most of their earlier panic-driven losses. Wall Street’s three major indexes slumped early on Tuesday but ended well off the day’s lows as investors snapped up beaten-down shares late in the session.

The dollar index against a basket of six major currencies was flat at 96.979 after posting a modest loss the previous day. In commodities, U.S. crude futures traded at $66.41 per barrel after dropping roughly 4 percent on Tuesday to a two-month low of $65.74. Brent crude futures traded at $76.53 per barrel after dropping more than 4 percent on Tuesday to $75.88, their lowest since Sept. 7. Crude slid after Saudi Arabia said it could supply more crude quickly if needed, easing concerns ahead of U.S. sanctions on Iran.

The recent sell-off in global equities has also raised worries about slowing growth curbing demand for crude.

source: livemint.com