Sensex up 405 points as rupee recovers
Mirroring the turnaround in the rupee, stock markets soared on Thursday, with the S&P BSE benchmark Sensex logging its best gain in a week of nearly 405 points to end at 18,401.04 on across-the-board buying.business Updated: Aug 29, 2013 22:11 IST
The Sensex on Thursday surged by 404.89 points, or 2.25%, to close at 18,401.04 on the back of a strengthening rupee and F&O (Futures & Options) expiry.
This is the best gain since the 407-point rise on August 22. Investors became richer by Rs 1 lakh crore. After a solid start, the Sensex remained in the positive zone for the entire session.
“The RBI’s latest move to open the forex swap window for oil marketing companies to support their daily dollar requirements helped the rupee strengthen considerably on Thursday that positivity reflected on the equity front as well,” says Jayant Manglik, president of retail distribution, Religare Securities. The rupee closed at 66.55 against the dollar on Thursday.
“Overnight gains in the US and the Asian markets propped up the benchmark indices to open with a positive gap. From there on, the benchmark indices just continued rallying on account of short-covering across the markets,” says Amar Ambani, head of research at IIFL.
All of the indices that comprise the Sensex were up on Thursday led by the oil and gas index that was up by 2.86%. The telecom sector also performed well.
Top gainers on the Bombay Stock Index included Muthoot Finance (up 18.64%) and Sesa Goa (up 13.54%) and National Aluminum (up 11.78%). Metals stocks have been performing better in the recent few days on the back of better economic data from China.