Millennium Post

Sensex breaks 7-day losing string, up by 205 to 20,399

Despite the rise in the WPI, CPI and lower-than-expected IIP data, the market recovered as according to the marketmen it was already factored in and short-covering ahead of the long weekend holidays came to rescue the market.

Surprisingly, rate sensitive stocks from auto, banking and realty segments led the rally, despite expectations of rise in key rates by apex bank to tame the inflation.

Reserve Bank of India (RBI) governor, Raghuram Rajan, on Wednesday expressed comfort about core inflation and stressed the narrowing current account deficit (CAD) in his efforts to boost the market sentiment.

The BSE 30-share barometer resumed strong and touched a high of 20,568.99, up by almost 375 points. But, it later reacted downwards marginally after the WPI data filtered in, still showing a rise of 205.02 points or 1.02 pct to settle at 20,399.42. In last straight seven sessions, it had tanked by 1,044.96 points or 4.92 per cent.

Similarly, the broader CNX Nifty of the NSE also bounced back by 66.55 points or 1.11 per cent to regain 6K-mark to end at 6,056.15.

Despite worsening inflation data, Rupee manages to rise 19p to 63.11 per $

MUMBAI: The rupee appreciated further by 19 paise to close at 63.11 against the Greenback following strong recovery in local equities amid sustained dollar selling by exporters.

However, firm dollar overseas restricted the rupee rise while persistent capital inflows too aided the surge. The rupee resumed higher at 63.15 a dollar from previous close of 63.30 at the Interbank Foreign Exchange (Forex) market and improved further to a high of 62.95 on initial steep rise in domestic stocks.

Later, it met with some resistance after the government released wholesale price index, expecting hike in key interest rates by the apex bank in its next policy meet.  It touched a low of 63.34 before closing at 63.11, still showing a rise of 19 paise or 0.30 per cent.
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