The Hindu : Business : Sensex recovers initial losses

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Wednesday, Jun 24, 2009
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Sensex recovers initial losses

Spurt in RIL shares, firm European stocks help

MUMBAI: The Bombay Stock Exchange sensitive index, Sensex, bounced back in the last 30 minutes of trading after hitting a three-week low and ended flat in choppy trade on Tuesday. Firm European stocks helped the Indian bourses bounce back after the benchmark Sensex touched a low of 14016.95 in line with extremely weak Asian markets.

The Sensex ended at 14324.01 against 14326.22 on Monday.

Reliance Industries (RIL), with the highest weight in the Sensex, facilitated the bounce-back as it surged by Rs. 114.95 from its intra-trade low of Rs. 1,901.10.

RIL closed 3.26 per cent up at Rs. 2,016.05, after reports that NTPC might buy gas from RIL at $4.2 per million British thermal units except for the projects under dispute in court. The initial slide in the market was attributed to extremely weak Asian cues. Asian indices ended down 2-3 per cent except the Shanghai Composite, which was flat.

Trading was highly volatile on the BSE because of the rollover of positions to the next series.

The broader 50-share Nifty of the National Stock Exchange gained 11.75 points to close at 4247.00 as ONGC, its top heavyweight, spurted sharply. ONGC gained 3.03 per cent on the BSE and 3.31 per cent on the NSE on news that the country’s biggest oil explorer has struck oil and gas in three new blocks.

European markets were trading in the green in the first half this afternoon.

Rupee recovers

The rupee bounced back from its early lows and ended at 48.56/57 against the U.S. currency on Tuesday following a recovery in domestic stock markets. It closed at 48.6100 on Monday. The dollar weakened against a basket of currencies overseas in late afternoon trade.

Touching a five-week low of 48.94/95 against the American currency in early trade, the rupee later traded in sync with the equity market. It resumed weak at 48.85/86 a dollar against Monday’s close of 48.60/61.— PTI

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