News Column

Indian stocks scale new highs, rupee rises

September 3, 2014


Mumbai: Surging for the ninth straight session, the BSE Sensex gained about 125 points to close at fresh peak of 27,139.94 on Wednesday as IT stocks led rally powered by positive economic data and continued overseas fund inflows.

The wide-based NSE Nifty index rose by 31.55 points to close at record 8,114.60 points. The index touched intra-trade record high of 8,141.90 points, surpassing previous record of 8,101.95 hit on Tuesday.

The 30-share Sensex opened on a strong footing and rose quickly to new intra-day high of 27,225.85 points as buying momentum picked up.

But gains were capped by profit-booking at record levels and the barometer settled at 27,139.94 fresh record closing level with net gains of 120.55 points or 0.45 per cent over last close.

The Sensex bettered its previous closing peak of 27,019.39 hit on Tuesday. The gauge has now gathered over 825 points in nine straight sessions.

Shares, spread over a broad front, have been hitting new highs for the past few sessions on optimism that the Narendra Modi-led government would announce more reforms that could bring economy back on track.

IT stocks, led by TCS, were in the limelight on fresh spell of buying after bullish US manufacturing and construction data. TCS, Infosys and Wipro rose between 2.45 per cent and 3.4 per cent.

Half of the 30 Sensex stocks closed with gains while the rest ended lower. Brokers said narrowing current account deficit, better-than-expected GDP growth in April-June quarter continued fund flows. Softening crude prices, hovering at multi-months low have buoyed trading sentiments.

Foreign Portfolio Investors (FPIs) bought shares worth a net Rs6.73 billion on Tuesday as per provisional data from the stock exchanges. Sectorwise, the BSE IT index rose the most by 2.50 per cent, followed by the Teck index by 2.21 per cent and Realty index by 2.15 per cent.

Currency rises

Fall in the dollar value overseas on news that Russia and Ukraine today agreed on a cease-fire and cheerful local equities helped the Indian rupee to break its four-session of losing string, recovering by 19 paise to close at 60.49 against the Greenback, but came off from one-month intra-day high of 60.33 log in the afternoon trade.

Sustained portfolio investments and exporters -who were long on United States dollar on hopes of further rise in dollar value sold dollars on receding geo-political worries after Ukraine's President and Russian President on Wednesday discussed the peace process also helped the rupee's rebound.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced better at 60.64 a dollar from previous close of 60.68 and immediately touched a low of 60.69. Later, it gradually bounced back to a high of 60.33 before surrendering some of its gain to settle at 60.49, still showing a rise of 19 paise or 0.31 per cent. In past four trading days, it had dipped by 25 paise or 0.41 per cent.

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Source: Times of Oman

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