The Hindu : Business : Sensex rebounds 152 points

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Sensex rebounds 152 points

A buoyant start in European markets helps the recovery

MUMBAI: The Bombay Stock Exchange benchmark Sensex bounced back by 152 points in a high level of volatility on Wednesday.

The recovery was largely attributed to a buoyant start in European markets and signs of expansion in manufacturing activity in June.

Investors made fresh commitments a day before the Economic Survey is presented to Parliament, on expectations that the government would provide industry-friendly proposals in the full budget, to be presented on July 6.

The BSE 30-share barometer fluctuated widely between 14727.49 and 14355.52 before settling at 14645.47, a net gain of 151.63 points or 1.05 per cent.

Investors booked profits at higher levels due to concerns about fund-raising plans by many corporates as well as a fresh fall in exports by 29.2 per cent.

Exports fell for the eighth month in a row in May due to the global downturn.

Companies are expected to raise more than $10 billion in this fiscal through qualified institutional placements and initial public offers, which, in turn, will affect liquidity in the secondary market.

The National Stock Exchange’s 50-share Nifty was up 49.80 points or 1.16 per cent at 4340.90.

European markets were up by about 1.4-1.76 per cent in early trade while Asian indices such as Taiwan Weighted, Kospi and Shanghai Composite ended higher by about 1.5-2.3 per cent.

The Nikkei ended in the red. Some realty stocks on the BSE hogged the limelight during the day.

Rupee edges up

The rupee recovered its early losses and closed fractionally up at 47.89/90 against the dollar on Wednesday in tandem with buoyant domestic stock markets as the U.S. currency weakened against the euro overseas.

In restricted activity, the rupee resumed lower at 48.10/12 from its last close of 47.90/91 and later moved in a range of 47.88 and 48.14.

It drew support from a late surge in equity markets, raising hopes of improved capital inflows.— PTI

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