Sensex rides to 3-week high, Rupee sees worst dip in 3 weeks
19 Feb 2014 6:08 AM IST
The Sensex, which had gained 271 points in the previous two sessions, rose further by 170.15 points, or 0.83 per cent, to close at 20,634.21 — the highest level since 29 January.
Axis Bank, HDFC, ICICI Bank and Maruti Suzuki led the 21 gainers in 30-share Sensex. GAIL and ITC were among laggards.
The 50-scrip National Stock Exchange index Nifty rose 53.80 points, or 0.89 per cent, to close at 6,127.10.
At the Interbank Foreign Exchange (Forex) market, the rupee commenced lower at 62.02 a dollar from the previous close of 61.84. Later, it declined to a low of 62.31, before settling at 62.20, a fall of 36 paise or 0.58 per cent.
‘While announcing the Interim Budget, the Finance Minister stated government will contain the fiscal deficit at 4.6 per cent of GDP. This has boosted investor confidence and buying interest was seen.
Excise duty cuts in sectors such as auto and capital goods also led to renewed buying,’ said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
Banking stocks lead the upsurge on rising hopes that improving economic growth would boost lending business, brokers said.
Global rating agency Moody's has said India's interim budget is in line with the policy assumptions that underpin its 'Baa3' rating with a stable outlook.
Sectorally, the BSE Banking sector index gained the most by rising 2.34 per cent, followed by capital goods (2.09 per cent), power (1.73 per cent), metal (1.03 per cent) and auto (0.96 per cent). Overall, eight indices gained, three fell and TECK index closed flat.
In the previous two sessions, rupee rose by 58 paise or 0.93 per cent. Tuesday’s drop is the biggest since the 44-paise fall on 27 January. Slight recovery in dollar index, downbeat data from Germany and dollar demand in the local market were some of the factors leading to weakness in rupee,” said Abhishek Goenka, Founder & CEO, India Forex Advisors.
Regional currencies like the Yen slid to its weakest levels this month amid reports that Bank of Japan said it will continue monetary easing to meet its inflation target.
Some analysts suggested that rupee’s depreciation was linked to fears that fiscal projections in interim budget may not be met. FIIs had injected $83.91 million on Monday as per Sebi data.
Axis Bank, HDFC, ICICI Bank and Maruti Suzuki led the 21 gainers in 30-share Sensex. GAIL and ITC were among laggards.
The 50-scrip National Stock Exchange index Nifty rose 53.80 points, or 0.89 per cent, to close at 6,127.10.
At the Interbank Foreign Exchange (Forex) market, the rupee commenced lower at 62.02 a dollar from the previous close of 61.84. Later, it declined to a low of 62.31, before settling at 62.20, a fall of 36 paise or 0.58 per cent.
‘While announcing the Interim Budget, the Finance Minister stated government will contain the fiscal deficit at 4.6 per cent of GDP. This has boosted investor confidence and buying interest was seen.
Excise duty cuts in sectors such as auto and capital goods also led to renewed buying,’ said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
Banking stocks lead the upsurge on rising hopes that improving economic growth would boost lending business, brokers said.
Global rating agency Moody's has said India's interim budget is in line with the policy assumptions that underpin its 'Baa3' rating with a stable outlook.
Sectorally, the BSE Banking sector index gained the most by rising 2.34 per cent, followed by capital goods (2.09 per cent), power (1.73 per cent), metal (1.03 per cent) and auto (0.96 per cent). Overall, eight indices gained, three fell and TECK index closed flat.
In the previous two sessions, rupee rose by 58 paise or 0.93 per cent. Tuesday’s drop is the biggest since the 44-paise fall on 27 January. Slight recovery in dollar index, downbeat data from Germany and dollar demand in the local market were some of the factors leading to weakness in rupee,” said Abhishek Goenka, Founder & CEO, India Forex Advisors.
Regional currencies like the Yen slid to its weakest levels this month amid reports that Bank of Japan said it will continue monetary easing to meet its inflation target.
Some analysts suggested that rupee’s depreciation was linked to fears that fiscal projections in interim budget may not be met. FIIs had injected $83.91 million on Monday as per Sebi data.
Next Story
