The BSE benchmark Sensex seemed headed for another turmoil after rupee threatened to breach the next psychological level of 55 against dollar. The 30-share index shed 260 points in sync with rupee which fell to 54.90.
"The political turmoil in Greece has made the sentiments jittery around the globe. The Indian markets opened with deep cuts in almost all the sectoral indices. They fell down on cautious sentiments. High volatility in the currency market aided the downtrend. Rupee continued to plunge to record lows for yet another day," said Rakesh Goyal, Sr. Vice President, Bonanza Portfolio.
However, State Bank of India took investors by huge surprise with its 200 times rise in quarterly profits at Rs 4,050 crore -- its highest ever. The lender declared 350 per cent dividend, bolstering investor sentiment. SBI shares zoomed over 5 per cent which dramatically lifted the mood of markets.
The recovery in rupee aided by RBI also boosted the sentiment as the currency moved to Rs 54.44 from its record low levels of 54.90 in early trade. It had closed Rs 54.47 versus the US dollar yesterday, after hitting all-time lows.
"Better-than-expected results from SBI led the turnaround. .. He rupee reversed from intra-day lows and further helped sentiments," said Dipen Shah, Fundamental Research Head, Kotak Securities.
Led by SBI, BSE-Bankex was the top sectoral index with a rise of 1.75 per cent. SBI, ICICI Bank and HDFC Bank together added about 65 points to the Sensex rise.
Similarly, the NSE 50-share Nifty also touched a low of 4,788.95, before recovering to settle at 4,891.45.
Investor wealth rose by nearly Rs 15,000 crore today. (MORE)
