“I think Reliance Industries has lent great support to the current rally. Positive news on Reliance such as increased margin, capacity addition and growth in shale gas business abroad and retail business in India triggered upswing in RIL stocks,” said Choksey.
As of 2.14 pm 28 out of 30 Sensex stocks were up, metal stocks Sesa Goa and Tata Steel being the top gainers. Sesa Goa rose 7.47% and Tata Steel 5.8% as China, the biggest consumer of metals, reported positive GDP numbers after two tepid quarters. “Besides China GDP numbers, improvement of consumption in Europe too helped metal stocks,” said an analyst with IDFC Securities.
Meanwhile, rupee which has been on an upswing for the past six weeks today breached an important milestone of Rs. 61 against US dollar. The rupee strengthened to Rs. 60.9 before climbing down to Rs. 61.26 by 2.27 pm. “The general view that US Fed won’t tighten its monitory policy strengthened rupee too besides lowering current account deficit,” said Naveen Mathur, associate director, Angel Broking.
“However there are no fundamental changes and we may see rupee holding up at 61-62 levels,” said Mathur.