Sensex closes 30 points up; investors fret over weak rupee
After rising over 140 points intra-day, the BSE benchmark Sensex today finally closed with a meagre gain of 30 points amid hectic selling in the last hour of trade triggered by the rupee moving towards its record lows against the dollar.business Updated: May 21, 2012 17:32 IST
After rising over 140 points intra-day, the BSE benchmark Sensex on Monday finally closed with a meagre gain of 30 points amid hectic selling in the last hour of trade triggered by the rupee moving towards its record lows against the dollar.
The 30-share Sensex, which climbed to day's high of 16,298.39 led by smart gains in State Bank of India and Reliance Capital stocks, encountered a sudden bout of selling after investors became jittery over the weakness in rupee.
Shortly thereafter, Sensex touched an intra-day low of 16,149.61 but finally settled at 16,183.26, up 30.51 points or 0.19%.
Brokers said the late selling emerged after the rupee touched an intra-day low of 54.88 points against the dollar during market hours, raising concerns over slowing economic growth and a widening budgetary deficit.
They also said that attractive earnings in State Bank of India and Reliance Capital as well as the firming trend in global markets saved the market from ending in negative zone at close.
On similar lines, the 50-share NSE Nifty ended higher by 14.60 points, or 0.30% to 4,906.05, after touching the day's high of 4,937.50.
Market participants said the market was mostly supported by stocks of capital goods, realty, power and banking sectors. Among the 30 Sensex stocks, 16 gained while 14 declined.
State Bank of India rose by 3.37% to Rs 2,007.40 and Reliance Capital by 7.85% to Rs 313.75 after investors cheered their stellar earnings.
Other stocks like Tata Power shot up by 4.49% to Rs. 95.50, Maruti Suzuki rose by 2.99% to Rs. 1,199.95, L&T gained 2.35% to Rs. 1,189. BHel and Coal India also gained over 2% each.