The Hindu : Business : Sensex snaps losing string

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Friday, Feb 20, 2009
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Sensex snaps losing string

MUMBAI: In lacklustre trading, the Bombay Stock Exchange sensitive index, Sensex, snapped its three-day losing string by posting a moderate 27-point gain on Thursday on buying support in IT stocks, mainly Wipro and Infosys. Mirroring narrowly mixed trend on the Wall Street and Asian markets this morning, the Sensex moved in a narrow range throughout the day, which marketmen said were signs of consolidation at the 9000-level.

It closed at 9042.63, a gain of 27.45 points over Wednesday’s close of 9015.18. The 50-share Nifty of the National Stock Exchange improved by 13.20 points to 2789.35. IT shares attracted good buying support.

According to market participants, inflation rate falling to 14-month low of 3.92 per cent for the week ended February 7 is likely to induce the Reserve Bank of India to signal further cut in key interest rates to prop up demand. However, gloomy outlook for the global economies made investors wary of stock markets, they added.

After a disappointing interim budget, the players are now expecting from the RBI some monetary measures to boost the economy, particularly after a decline in inflation to 14-month low.

With rupee recording a sharp fall against the dollar, IT bluechips Wipro at 5.41 per cent and Infosys at 2.50 per cent were the best two index gainers.

Grasim, Maruti Suzuki and HDFC also gained in the range of over two per cent. Reflecting the gain in IT counters, the sectoral index improved by 50.17 points or 2.45 per cent. However, the BSE-CG index dropped by 57.20 points. Among the Sensex losers, Hindalco topped the list at 3.49 per cent. ICICI Bank and L&T also lost over two per cent each. ACC was the second worst loser at 2.43 per cent.

Rupee recovers

Snapping a three-day losing streak, the rupee on Thursday hardened by 31 paise to 49.61/63 against the greenback on dollar selling at higher levels by exporters amid modest recovery in the domestic equity market. It closed at 49.93 on Wednesday.

In a fairly active trading at the inter-bank foreign exchange market, the rupee resumed slightly better at 40.90/92, but touched a low of 49.98 a dollar on uncertain equity markets.

However, it rebounded in the later part of the day to settle at 49.61/63 in line with some recovery in the equity market. It moved in a range of 49.61 and 49.98 during the day. — PTI

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