Sensex ends 22 pts higher as weak rupee trims gains
The BSE benchmark Sensex rose for the second straight day today but surrendered most of its initial gains on fresh weakness in the rupee to finally close the session just 22 points higher at 16,438.58.business Updated: May 29, 2012 17:06 IST
The BSE benchmark Sensex rose for the second straight day today but surrendered most of its initial gains on fresh weakness in the rupee to finally close the session just 22 points higher at 16,438.58.
The 30-share Sensex, which gained 199.02 points yesterday, closed higher by 21.74 points, or 0.13 per cent at 16,438.58 -- its highest closing since May 9. In the Sensex pack, 18 counters ended in positive zone, while 12 declined.
The index opened higher at 16,500.44 and soon touched a high of 16,544.38 largely in line with firming trend on the other Asian bourses and a better opening in the European markets. However, a weak rupee hit trading sentiment.
Brokers said the Indian markets pared gains due to fag-end selling by investors who became jittery as the rupee looked set to snap a three-day winning streak after gaining over 80 paise in the last three sessions.
The domestic currency touched an intra-day high fo 55.85 against the dollar and was last trading at 55.82, losing 64 paise over its previous close of 55.18.
On similar lines, the 50-share NSE index Nifty after regaining psychological 5,000 points level in the morning finally closed with a mere 4.45 point gain at 4,990.10. It touched an intra-day high of 5,020.15.
IT and realty stocks were in the limelight today with funds buying in those counters amid firming global trends.
Dealers said buying interest re-emerged in recently battered IT sector with Infosys, TCS and Wipro, ending with notable gains, helping Sensex to close in the positive zone.
The BSE-IT sector index gained the most by rising 1.19 per cent with Infosys rising 0.81 per cent, TCS gaining 1.39 per cent and Wipro ending 2.72 per cent higher.
In view of expiry in the derivatives segment on Thursday and March quarter GDP data later in the week, participants preferred to adopt a 'wait and watch' approach, brokers said.