Sensex climbs 272 points in early trade
The benchmark Sensex climbs more than 272 points in early trade on the back of buying by funds in heavy-weight stocks, triggered by firming global markets.business Updated: Aug 08, 2007 10:20 IST
The benchmark Sensex on Wednesday climbed more than 272 points in early trade on the back of buying by funds in heavy-weight stocks, triggered by firming global markets.
The 30-share index, BSE Sensex, which gained nearly 30 points on Tuesday, was shot up 272.28 points, or 1.80 per cent, to 15,205.05 in first five minutes of trading.
The wide-based National Stock Exchange's Nifty also rose by 72.35 points to trade at 4,428.70.
Stock brokers said US Federal decision to keep interest unchanged had positive impact on the trading sentiments here, triggering fresh buying by foreign funds.
They said the measure to tighten the norms for companies to borrow from overseas to check the rise in rupee value against other currencies by managing the flow of foreign funds into the country boosted the trading in IT stocks.
As per the changes, a company raising 20 million dollars of External Commercial Borrowings (ECBs) would have to seek prior permission of RBI to remit such funds into India.
IT companies have been recording lower turnover due to rise in the value of rupee, which has appreciated nearly 14 per cent against the US dollar since August 2006. This has been largely due to massive inflow of foreign funds as debt and equity.
The major support came in from heavy-weights like Infosys Technologies, State Bank of India, Reliance Industries, Reliance Energy, Reliance Communications, Bharti Airtel, Bajaj Auto, Maruti Udyog, Wipro, ICICI Bank, HDFC Bank, Larsen and Toubro, Tata Motors and Grasim Industries.