Sensex up 206 points to one-week high as rupee recovers
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Sensex up 206 points to one-week high as rupee recovers

Last Updated: Friday, August 23, 2013, 17:35
 
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Sensex up 206 points to one-week high as rupee recovers
Mumbai: Continuing its rise, the benchmark S&P BSE Sensex on Friday gained another 206 points to end at a one-week high as the rupee recovered after assurances from the government and the Reserve Bank.

The stock and currency markets got a boost after Finance Minister P Chidambaram yesterday said there is no need for panic and that revival and encouragement of growth will remain the government's focus.

Capital goods and bank stocks led 12 of the 13 sectoral indices higher, while the realty index finished lower.

The 30-share barometer initially touched a low of 18,210.75 on hesitancy in Asian stocks following the fall on Wall Street yesterday. It recovered to settle at 18,519.44, a rise of 206.50 points or 1.13 percent. Yesterday, it gained 407.03 points or 2.27 percent.

The rupee appreciated, ending six days of losses. After bouncing back from an all-time intra-day low of 65.56 yesterday, the local currency traded at 64.07 in late afternoon deals.

"Markets have pulled back on increasing optimism that the rupee has reached the bottom and may not fall from these levels," said Dipen Shah, head of Private Client Group Research at Kotak Securities. "We believe that if the government or RBI were to take steps to stabilise and strengthen the rupee, it would be a big boost to sentiment."

The 50-issue CNX Nifty of the NSE also improved further by 63.30 points or 1.17 percent to 5,471.75.

BHEL, with an 8.1 percent rise, led gainers on the Sensex, followed by Tata Power, Jindal Steel and Tata Steel.

Chidambaram said efforts are on to increase coal output, remove uncertainty of coal imports, restart iron ore mining and enhance capacity of fertiliser plants to boost growth.

India's efforts to curb imports, improve exports and attract greater remittances may help it almost fully fund its current account deficit this fiscal and also help the rupee recover to 61-level against the dollar in the next 6-12 months, Barclays said in a report today.

Asian stocks ended mixed after reports from Europe suggested a global economic recovery is under way. Key indices in Japan, South Korea and Taiwan firmed up while measures in China, Hong Kong and Singapore fell.

A Nasdaq Stock Market outage yesterday halted trading in US stocks for most of Thursday.

In the domestic market, 23 shares on the Sensex gained, led by BHEL, Tata Power (4.14 percent), Tata Steel (3.27 percent), Tata Motors (2.85 percent), ONGC (2.83 percent), TCS (2.74 percent), HDFC Bank (2.61 percent), ICICI Bank (2.6 percent) and M&M (2.41 percent).

Among the sectoral indices, S&P BSE-CG rose by 2.04 percent, followed by S&P BSE-Bankex 1.91 percent, S&P BSE-Oil&Gas 1.59 percentt, S&P BSE-CD 1.55 percent and S&P BSE-Auto 1.51 percentt.

The market breadth remained positive as 1,336 shares ended with gains, 981 finished with losses and 151 were unchanged. Total turnover dropped to Rs 1,960.40 crore from Rs 2,323.03 crore yesterday.

Foreign institutional investors sold a net Rs 1,277.64 crore of shares yesterday, as per provisional data from the stock exchanges.

PTI



First Published: Friday, August 23, 2013, 17:03


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