Sensex snaps 8-day losing streak, ends 119 pts higher
22 Nov 2011
Indian equity benchmark Nifty snapped 8-day losing streak on Tuesday -- bouncing back above the 4800 mark -- led by technology, banks, metals and auto (four-wheeler) stocks. But the market was extremely volatile during the day due to choppy trade in rupee. Both the benchmarks trimmed gains in late trade following cut in gains in European markets and downward spiral in the rupee. The 30-share BSE Sensex rose 119.32 points, to close at 16,065.42 and the 50-share NSE Nifty moved up 34 points, to end at 4,812.35.
Asia's worst-performing currency in 2011, the rupee today tumbled to an all-time low of 52.73 against the US dollar. In an intra-day trade, it appreciated to 52.30, which suggests that the RBI may have sold dollars; but it again moved down to 52.59 a dollar at the time of closing of Indian equity markets.
Anant Narayan, managing director, regional head of fixed income and currency trading, south Asia at Standard Chartered Bank and Sajjid Chinoy, Asia economics at JPMorgan suggest that despite the volatility being global, in the short term, it is only the central bank that can intervene and arrest the free fall.
European markets like France's CAC, Germany's DAX and Britain's FTSE were trading 0.5% higher, which rallied 1% in the opening trade. The Dow Jones futures turned flat.
Back home, the most beaten down stocks in the last eight days saw short covering in today's trade. Tata Motors was the biggest gainer among largecaps, rising 6% to Rs 173 a share.
In the technology space, TCS, Wipro and Infosys gained 1.7-2.3%. HDFC, ICICI Bank, Reliance Industries, SBI, Sterlite and BHEL climbed 1-2%.
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