Global markets traded higher on fresh signs of a recovery
MUMBAI: Domestic and global factors combined to lift the Bombay Stock Exchange sensitive index, Sensex, by 95 points which and closed at nearly a ten-month high of 15103.55 on Friday as IT, capital goods and the auto sector kept up the growth tempo. The Sensex closed at 15008.68 on Thursday.
Domestic institutional investors remained heavy sellers in equity for the second successive day despite signs of recovery in the Indian economy and the government’s reforms agenda in key sectors such as financial, infrastructure and realty.
In a similar fashion, the 50-share National Stock Exchange index, Nifty, improved by 14.25 points to 4586.90, after touching the day’s high of 4636.85.
Global markets traded higher on fresh signs of recovery in the economy after the U.S. unemployment insurance dropped for the first time in five months and the European Central Bank kept its benchmark interest rate at one per cent.
“The market (BSE) was looking to take a correction as the frontline stocks are looking tired, but the market got a boost from the President’s assertion that the reforms would be given priority,” SMC Global Vice-President Rajesh Jain said.
Small-cap and mid-cap shares were the worst affected by dramatic sell-off by local operators and snapped a seven-day long winning streak.
Ending its three-day losing streak, the rupee recovered by nine paise to 47.11/12 against the dollar on Friday on sustained rally in equity markets and fresh capital inflows. It closed at 47.21 on Thursday. A fresh fall in the dollar value against its major currencies also helped the rupee recovery.
The rupee resumed higher at 47.10/12 a dollar. It later moved in a narrow range of 47.20 and 47.01 before ending at 47.11/12. — PTI