New Delhi, Jan 23 (IANS) Indian shares opened higher Wednesday as the US Federal Reserve stepped in to cushion the global financial crisis with a cut in interest rates, triggering positive reactions in stock markets across the globe.
The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened higher at 17,415.26 points, with a gain of 685.32 points, over the previous day’s close at 16,729.94 points.
Some 10 minutes into trading, the index was ruling at 17,400.34 points, with a gain of 670.40 points, or 4.01 percent, data with the bourse showed. All sector-specific indices were also ruling higher.
Monday and Tuesday saw the barometer plummet 1,408.35 points, or 7.41 percent, and 875.41 points, or 4.97 percent, on account of panic selling, in line with the movements across the globe from Tokyo to the US.
The authorities at the Mumbai bourse even had to suspend trading for an hour Tuesday, as Sensex dipped below the circuit breaker, before a pep talk from Finance Minister P. Chidambaram on the fundamentally strong Indian economy helped cut losses.
Investors had lost $170 billion Monday in terms of market capitalisation, with another $95 billion shaved off the valuations the next day as scrip after scrip lost ground on account of panic selling.