Mumbai: The BSE benchmark Sensex recovered by over 88 points in early trade on Tuesday after Monday’s steep fall on emergence of buying by funds and retail investors even as rating agency Fitch lowered India's credit rating outlook to negative.
Covering-up of short positions by speculators, too, helped stocks to recover part of Monday's losses.
The 30-share barometer, which had lost 244 points in Monday’s trade, recovered by 88.13 points, or 0.53 percent, to 16,793.96 points with capital goods, auto and metal sector stocks leading the recovery.
The wide-based National Stock Exchange index Nifty also moved up by 16.35 points, or 0.33 percent, to 5,080.60.
Brokers said emergence of selective buying by funds and retail investors in heavy-weight stocks at existing levels helped the trading sentiment to improve.
They said, however, lowering of country's credit rating outlook to negative by global agency Fitch on Monday and disappointing RBI's mid-term monetary policy, keeping all key rates unchanged, restricted the gains.
In the Asian region, the Japan's Nikkei fell by 0.32 percent, while Hong Kong's Hang Seng shed 0.27 percent in early trade. The US Dow Jones Industrial Average ended 0.20 percent lower in Monday's trade.


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