Investors prefer to play safe before the budget
The Bombay Stock Exchange sensitive index, Sensex, managed to close in the positive zone on Tuesday, inching up 49 points, after trading in a narrow range throughout the day as investors preferred to play it safe before the budget.
While weak Asian advices had the major indices opening down, reports that Dubai World has come to a repayment plan boosted the markets across the continent. Global markets are awaiting US Fed chairman's statement on policy rates.
Marketmen said both funds and retail investors were not betting big as they await expiry of the February contracts on Thursday and some guidance from the budget on Friday. The 30-share Sensex moved in a narrow range of 16324.93 and 16178.91 before concluding at 16286.32, a net rise of 49.27 points. On poor Asian cues the index had a 58-point gap-down opening.
Realty counters were at the forefront on expectations of some positive measures in the budget while metals continued to attract good buying support following rising prices on the London Metal Exchange. However, auto segment suffered a sharp setback on heavy selling on hopes of rise in excise duty in the budget.
On the overseas front, Asia ended higher barring Japan and China, while European indices edged up half-a-percentage point in early trade. The broader 50-share, Nifty of the National Stock Exchange ended slightly better by 13.65 points at 4870.05.
Marginal drop in rupee
The rupee fell marginally by 3 paise against the dollar and closed at 46.24/25 on fresh capital outflows following recovery of the U.S. currency in overseas markets. It closed at 46.22 on Monday.
At the interbank foreign exchange market, the rupee shot up to a high of 46.06 in early trade due to dollar selling by exporters and banks.