Sensex surges to one-week high of 23,649, Rupee hits 68 vs dollar
The market benchmark Sensex surge 267.35 points to hit a one-week high of 23,649.22 on Thursday, largely due to domestic equities surging in line with its global peers, boosted by a recovery in crude oil prices. Across-the-board buying led by IT, banks and healthcare stocks also helped.business Updated: Feb 18, 2016 18:53 IST
The market benchmark Sensex surge 267.35 points to hit a one-week high of 23,649.22 on Thursday, largely due to domestic equities surging in line with its global peers, boosted by a recovery in crude oil prices. Across-the-board buying led by IT, banks and healthcare stocks also helped.
Buying picked up after Asian and European shares continued their winning momentum as crude oil tested USD 35 a barrel in international markets after key producer Iran sided with Saudi Arabia and Russia on production freeze.
US Federal Reserve hinting at softer stance in its January policy meet also had its bearing.
Meanwhile, the US dollar edged down against the rupee at 68.46/47 per dollar but the pound sterling finished higher at Rs 98.34/36 per pound at the close of the Interbank Foreign Exchange market.
“The market has seen a positive momentum led by the FOMC’s statement that they are unlikely to go ahead with four rate hikes this year due to weak global economic condition,” said Vinod Nair, Head-Fundamental Research at Geojit BNP Paribas.
Meanwhile, Moody’s Investors Service said Indian economy will grow at 7.5% in 2016 and 2017 as it is relatively less exposed to external headwinds, like China slowdown, and will benefit from lower commodity prices.
The BSE Sensex opened gap-up at 23,536.47 and hovered in a range of 23,735.35 to 23,448.21 before settling at 23,649.22, showing a gain of 267.35 points or 1.14%. The gauge had gained 189.90 points on Wednesday.
The NSE 50-share also gained 83.30 points or 1.17% to close at 7,191.75 after between 7,215.10 and 7,127.85.
Dr Reddy’s Laboratories emerged as the star performer and closed up by 4.52% at Rs 3,094.95 after its board approved a share buyback around 44.85 lakh shares for Rs 1,569.4 crore.
Shares of software security solutions provider Quick Heal Technologies made a weak stock market debut on Thursday, plunging nearly 21%, over the issue price of Rs 321.
Monsanto remained under pressure and slipped 3% as CCI said is it probing the company whether it abused dominant position as a supplier of genetically modified cotton seeds.
Asian stocks ended higher with Hong Kong, Japan, South, Singapore, Korea and Taiwan rising 1.22-2.32%. However, China’s Shanghai index settled 0.16% lower.
Key indexes in Europe, like France CAC and Germany’s DAX firmed up by 0.24% and 0.47% while the UK’s FTSE was quoted lower by 0.46%.
Back home, mid-cap and small-cap indexes ended 0.63% and 0.59% higher, respectively. Overall, out of the 30-share Sensex pack, 20 scrips gained.
The market breadth turned positive as 1,418 shares ended higher, 1,110 closed lower while 155 ruled steady. The total turnover rose to Rs 3,535.11 crore from Rs 2,352.52 crore on Wednesday.