Sensex jumps 727 points, Rupee back at 63-level
Mumbai: Markets were on fire with the Sensex zooming to near 20,000 mark and the rupee gaining 140 paise Tuesday on the back of strong export and car sales data and receding concerns over a US attack on Syria.
Stock market investors became richer by a staggering Rs 2 lakh crore as six out of every 10 stocks gained on BSE. A slide in oil prices and robust Chinese economic data also helped domestic markets log gains for the fourth day in a row.
The 30-share Sensex today breached the 20,000 mark for the first time since July 25, before settling at 19,997.10, higher by 727.04 points or 3.77 percent. In four days, it has vaulted by over 1,762 points or nearly 10 percent.
The rise was the biggest in absolute terms since the Sensex surged 2,110.79 points, or 17.34 percent, on May 18, 2009, when the UPA government came to power.
In the currency markets, the rupee touched an over two-week high of 63.78 against the dollar and closed at 63.84, up a whopping 140 paise compared to previous close of 65.24.
Besides a weak dollar overseas, foreign institutional investors (FIIs) buying equities worth over Rs 2,500 crore today helped the rupee surge the most in nearly two weeks.
Brokers said the local currency is expected to strengthen further. In four days, the rupee has risen 379 paise or 5.6 percent.
The threat of US action against Syria eased, with Washington saying it will consider Russia's call for Syria to turn over its chemical weapons to international control.
Indicating a possible revival of consumer sentiment, domestic passenger car sales grew by 15.37 percent to 1,33,486 units in August this year -- snapping a nine-month long string of declines.
On the economy front, exports rose for the second straight month in August helping narrow trade gap. Gold imports dipped sharply to USD 0.65 billion in August.
The sustained rally in the markets was also driven by investors pinning hopes on RBI Governor Raghuram Rajan unleashing financial sector reforms in a bid to revive an economy that grew at its slowest pace in a decade last fiscal.
Meanwhile, gold prices witnesses yet another forgettable day with prices dropping Rs 550 in Mumbai, Rs 405 in Kolkata and Rs 55 in Chennai. However, it rose Rs 270 in New Delhi.